- Affected by the traditional slack season and the new writing speed of DVD recorder drives not stimulating demand, Taiwanese optical disc drive shipment declined sequentially in the second quarter of 2004. However, compared to the same period last year, when SARS hit the industry, shipment volume grew slightly 4.1% to reach 23 million units. ASP (Average Selling Price) declined to hit US$33 in the second quarter while shipment value grew 10.1% year on year to US$762 million.
With new products not visibly stimulating consumer demand, shipment value declined sequentially in the second quarter of 2004. Market acceptance for 12X DVD recorder drives remains low, with consumers preferring the 8X specification. Furthermore, an increase in price competition between makers led to a 13% sequential decline in DVD recorder drive ASP, while royalty issues have caused DVD recorder drive shipment share to grow merely 2% from the first quarter. As a result, some makers have shifted their development strategy from seeking an increase market share to balancing volume and royalty fees to maintain profitability.
In the third quarter of 2004, with the PC industry anticipated to grow nearly 10% from the second quarter, coupled with makers' expected rollout of 16X plus and dual recorder drives, volume is anticipated to grow to 27 million units. However, the tight supply of high performance LD (Laser Drive) optical pickup heads for 16X DVD recorder drives poses challenges for the industry's future development.