(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Taiwan DVD Makers Optimistic about Future Prospects
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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.
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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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