Computing - Slim Type DVD Burner Makers See Major Price Squeeze
August 11, 2004
In an unexpected strategic move to consolidate their presence in the slim type DVD burner market, Japanese makers have started to aggressively reduce prices, countering low-price strategies that Taiwanese and Korean makers apply.
Long dominated by Japanese makers such as Matsushita Electric, TEAC, Ricoh, NEC, and Pioneer, the slim type DVD burner market now sees Korean makers HLDS and Toshiba-Samsung, and Taiwanese makers Quanta Storage, Lite-On, and BenQ emerging as a major force. To defend their last beachhead, Japanese makers have driven down prices, sparking a bidding war for orders. As a result, slim type DVD -prices were for the first time lower than half-height DVD burners and continued to break new lows.
At present quotation for manufacturing of 8x models are as low as US$70 to US$75. This is half the price for 4x models when they were still mainstream in the beginning of 2004. Long gone were the US$170 - US$180 range when slim type DVD burners made debut in the market.
Slim type combos are still widely adopted by notebook PCs, with each costing approximately US$50 to produce. However, it is a popular belief among makers that the narrowing gap in DVD burner prices is expected to facilitate replacement cycles.