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DVD drive prices set to fall

Production surging in Taiwan

If you’re thinking of buying a DVD drive, you might want to put your purchase off for a month or two, as prices are set to drop by almost 50 percent in the second half of this year.

The price drop is due to sharp increases in Taiwanese shipments of DVD, according to Market Intelligence Center (MIC), a government-backed market research firm in Taiwan.

Taiwanese hardware makers excel at producing large volumes of IT hardware products at low cost. And Taiwanese companies will take a larger share of the market for DVD recorders as prices fall, MIC said in a statement.

Taiwanese companies, including BenQ and LiteOn Technology, shipped around 1m DVD+RW drives, DVD-RW drives and DVD-RAM drives, worth £1.2m during the first half of 2004, up twenty-fold from shipments of close to 50,000 units during the same period last year.

Looking ahead, Taiwanese companies could ship up to 2m DVD recorders during the second half of this year, MIC said.

MIC said a drop in the price of key components, including DVD loaders and MPEG-2 decoder chips, will cause the price of DVD recorders to fall by nearly 50 percent during the second half of this year.

Combined with consumer interest in global sporting events, such as the 2004 Olympic Games in Athens, this price drop will spur demand higher for DVD recorders, it said.


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