-Taiwanese optical disc drive shipments continued to grow in the first quarter of 2004, although at a milder rate than previously seen. Shipment volume grew 12.5% year on year to 27 million units in the first quarter of 2004, while ASP (Average Selling Price) maintained the US$35-and-above level for two consecutive quarters. Shipment value also increased 23% year on year to US$916 million. The overall performance of the industry was still very strong compared to other IT hardware industries.
Because of the upgrade in product mix, shipment value growth was higher than the increase in shipment volume. DVD recorder drive shipment share grew from 9.2% to 12% in the first quarter. As Taiwanese recorder drive manufacturers become more competitive on quality and price, they will look to expand from information hardware to consumer markets.
In the second quarter of 2004, despite positive factors such as steadier supply of optical pickup heads and new roll outs of 12X dual layer DVD recorder drives, the industry will face a limited momentum for growth due to the coming weak retail season and the high yardstick set by the upward trend for three consecutive quarters. Furthermore, as specifications for most DVD recorder drives shipped by Taiwanese makers are not evolving beyond 8X, price pressures will grow increasingly intense. Given the lack of positive factors, Taiwanese optical disk drive shipments are anticipated to drop to 24 million units in the second quarter.