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  • Taiwan DVD Makers Optimistic about Future Prospects
  • August 19, 1998 (TAIPEI) -- Taiwan digital video disc (DVD) makers expect a supply shortage in the fourth quarter of 1998, to be followed by a boom in the first quarter of 1999.
    This optimism is based largely on the rapid fall of DVD prices plus the belief that DVD-RAM specifications will be settled in October.

    An executive from one local DVD maker said that prices have recently been falling at a faster pace than expected. Most 2x DVD products are now priced at US$85 to US$90 per unit based on BOF, and the average is widely expected to hit a low of US$80 by the end of this year. This drop in prices will most likely lead to an increase in demand.

    In addition, the confirmation of DVD-RAM specifications in October will enable manufacturers to ramp up production of these products. While this will increase supply, it will also boost demand, as computer makers that are currently taking a wait-and-see attitude toward DVD decide to adopt this product as a standard feature in their new models.

    An executive from AOpen Inc. said that on the Taiwan market, DVD drives are currently priced at around NT$3,500 (US$100), which is about NT$1,000 less than CD-ROM drives. He added that consumers are willing to accept this kind of price gap, and for this reason, he expects sales to increase rapidly in the months to come.

    (Commercial Times, Taiwan)

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    Updated: Tue Aug 18 18:33:15 1998 PDT