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(Japanese Site)

  • Taiwan's Advanced Information to Promote 40x CD-ROM Drives
  • June 15, 1998 (TAIPEI) -- Taiwan's Advanced Information Inc. plans to introduce a 40x CD-ROM drive later this month in a bid to revive profit margins of CD-ROM manufacturing.
    Advanced Information is an affiliate of Taiwan computer giant Acer Inc. The company is not the first to introduce a 40x CD-ROM drive, as some companies in the United States already offer this product, and even a few of its Taiwan rivals are quite close behind.

    A marketing executive with Advanced Information said that his company's decision to make the 40x CD-ROM drive was due mainly to the fact that unit prices of 32x products have fallen off the US$40 benchmark. The 36x models are also cheap at around US$45 to US$46 each. The profit margin for 40x models is slightly higher than that for 36x products, but still lower than before, he added.

    Will other CD-ROM drive makers in Taiwan follow in Advanced Information's steps? Most companies say that while they do not want to become the first to sell 40x models, they are also unwilling to be the last.

    Lite-on Technology Inc. says that it has the necessary technology and ability to make 40x CD-ROM drives, and will not exclude the possibility of doing so when the time is right. The company adds, however, that it will not actively develop the 40x model market any time soon, because its output of 32x products is still quite large, at around 600,000 units a month.

    Pan International Ind. Corp. is less optimistic about the future of the 40x CD-ROM drive market, saying that such products have a high production cost and a limited market.

    Behavior Tech Computer Corp. and Acer Peripherals Inc., on the other hand, have both begun producing 40x CD-ROM drives on a limited scale.

    (Commercial Times, Taiwan)

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    Updated: Sun Jun 14 13:19:25 1998