(Japanese Site)
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| DVD Player Sales in Taiwan Won't Increase Soon
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February 27, 1998 (TAIPEI) -- Sales of DVD players in Taiwan will probably not see any significant growth
in the first half of 1998, mainly because the depreciation of the New Taiwan dollar has forced local
makers and importers to delay plans to cut prices.
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Nearly all Japan-based home appliance suppliers in Taiwan began marketing DVD players in 1997. However,
those products carried high prices of between NT$25,000 (US$768) and NT$28,000.
In early 1998, suppliers including Pioneer Electronic (Taiwan) Corp. and Matsushita Electric (Taiwan)
Co., Ltd. introduced second-generation DVD players, intending to push prices lower than NT$20,000.
The NT dollar's depreciation forced suppliers to cancel such plans, and they raised prices instead.
Pioneer, for example, had sought to introduce a new model priced at NT$22,900.
After the Chinese Lunar New Year holidays, however, the company was forced to adjust the price to
NT$24,000.
Prices of DVD players made by Matsushita also are expected to remain high, at between NT$27,000 and
NT$29,000.
Locally based manufacturers, which still depend heavily on imports of key components, have been forced to
raise prices, due to higher production costs. Acer Sertek Inc. had planned to debut in the DVD player
market with a NT$19,800 model, but it recently raised the price to NT$22,900 due to the weakening of the
NT dollar.
Most Taiwan-based makers of home electric appliances are still optimistic about the future of DVD
players.
They expect that market demand will double in 1998, because the number of new DVD software titles is
expected to top 500. In 1997, only 241 DVD software titles were released in Taiwan.
Nevertheless, local suppliers remain conservative on the matter of inventory control. Pioneer, Matsushita
and Acer Sertek only target monthly sales of between 500 and 1,500 units for the near future.
(Commercial Times, Taiwan)
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