Contract manufacturing prices for 4x recordable DVD drives have fallen by 30-40% in the last three to four months, according to sources at Taiwanese optical storage drive makers. The companies optimistically project that prices will drop just 10% in the fourth quarter of 2003.
Taiwanese makers are quoting 4x DVD+RW drives at US$100-110 and 4x DVD-Dual drives at US$120-130, the sources said.
The falling prices are mainly a result of intensified competition and an ongoing format upgrade as many Taiwanese companies introduce 8x products. While BenQ started volume production of 8x DVD drives in mid-September, Lite-On IT, Behavior Tech Computer (BTC) and Accesstek reportedly plan to launch similar products this month.
Prices, however, should fall at a slower rate in the fourth quarter because they have already dropped significantly and strong demand is expected in the traditional peak season, sources projected. Overall prices may drop by about 10% in the fourth quarter, or US$2-3 each month, they added.
Faced with rapid price cuts, growing demand and component prices falling unpredictably, many Taiwanese drive makers, including BenQ and Lite-On IT, have been shipping recordable DVD drives by air. According to the companies, it normally takes three to seven days to ship their products to the US or the Europe via air, compared to three or four weeks by sea.
The average shipping cost for each drive is about US$2.50-3.00 by air, and US$0.50-US$1.00 by sea, the companies said.
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