DVD-R disc prices driven down by anticipated capacity expansion

Dom · Jun 23, 2003, 12:05 PM

Despite tight supply, prices for DVD-R discs have plunged by about 30% due to anticipated capacity expansion in the second half of the year, sources said.

According to first-tier optical storage disc makers in Taiwan – Ritek, CMC Magnetics and Prodisc Technology, prices for A-grade 4x DVD-R discs have been down to US$1.30-1.40 from US$1.40-1.50 in early June.

The companies’ local resellers, however, said that one or more first-tier optical storage disc makers have recently sold A-grade 4x DVD-R discs at between US$1 and US$1.10, down by about 30% compared to earlier prices. Prices for B- and C-grade discs have dropped to below US$1, the resellers said.

In addition, second-tier optical disc manufacturers in Taiwan are selling 4x DVD-R discs at record low prices of between US$0.80 and US$0.90 and DVD-R discs with lower-speeds at about US$0.60, the companies said.

The falling prices are mainly seen by the industry as a result of anticipated capacity expansion of major disc makers later this year. While all the Taiwanese first-tier optical disc makers are set to expand their capacity by two to four-fold by year-end, other major disc providers, including Taiyo Yuden, Mitsubishi, TDK, Hitachi Maxell and Moser Baer India (MBI) also reportedly plan to raise their capacities by one to two-fold in the second half of this year.

Meanwhile, second-tier disc makers in Taiwan have generally experienced rising shipments of DVD-R discs due to significant improvements in yield rates. A number of second-tier companies have recently upgraded their yield rates to 50-70% from less than 20-30% earlier, the companies said. First-tier companies are currently maintaining yield rates at 90-95%.

Prices for DVD-R discs are expected to continue to drop in the summer, but should rebound in the fourth quarter, the traditional peak season, local disc makers said. Demand for DVD-R and DVD+R discs are expected to grow to 377 million units in 2003, up by 221% from 117 million units in 2002, a local disc company said, quoting data from market research firm Fujiwara-Rothchild.

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Source: DigiTimes

Jun 23, 2003, 12:05 PM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	DVD-R disc prices driven down by anticipated capacity expansion Despite tight supply, prices for DVD-R discs have plunged by about 30% due to anticipated capacity expansion in the second half of the year, sources said. According to first-tier optical storage disc makers in Taiwan – Ritek, CMC Magnetics and Prodisc Technology, prices for A-grade 4x DVD-R discs have been down to US$1.30-1.40 from US$1.40-1.50 in early June. The companies’ local resellers, however, said that one or more first-tier optical storage disc makers have recently sold A-grade 4x DVD-R discs at between US$1 and US$1.10, down by about 30% compared to earlier prices. Prices for B- and C-grade discs have dropped to below US$1, the resellers said. In addition, second-tier optical disc manufacturers in Taiwan are selling 4x DVD-R discs at record low prices of between US$0.80 and US$0.90 and DVD-R discs with lower-speeds at about US$0.60, the companies said. The falling prices are mainly seen by the industry as a result of anticipated capacity expansion of major disc makers later this year. While all the Taiwanese first-tier optical disc makers are set to expand their capacity by two to four-fold by year-end, other major disc providers, including Taiyo Yuden, Mitsubishi, TDK, Hitachi Maxell and Moser Baer India (MBI) also reportedly plan to raise their capacities by one to two-fold in the second half of this year. Meanwhile, second-tier disc makers in Taiwan have generally experienced rising shipments of DVD-R discs due to significant improvements in yield rates. A number of second-tier companies have recently upgraded their yield rates to 50-70% from less than 20-30% earlier, the companies said. First-tier companies are currently maintaining yield rates at 90-95%. Prices for DVD-R discs are expected to continue to drop in the summer, but should rebound in the fourth quarter, the traditional peak season, local disc makers said. Demand for DVD-R and DVD+R discs are expected to grow to 377 million units in 2003, up by 221% from 117 million units in 2002, a local disc company said, quoting data from market research firm Fujiwara-Rothchild. ______________________ Source: DigiTimes