OEM prices for entry-level DVD recorders have precipitously dropped to US$70-80 (£40-£46) due to less than expected global demand, forcing Japanese maker Sanyo Electric to forgo production, according to local industry sources.
Japan-based Techno Systems Research (TSR) projected that global sales volume for DVD recorders would grow from 10 million units in 2004 to 17-18 million units this year, but Taiwanese makers estimate that the global sales volume for 2005 may be less than 15 million DVD recorders based on sales performance to date.
Lite-On IT, a leading maker in Taiwan, recently lowered its annual shipment goal for DVD recorders from 1.3 million units to 1.0 million units and has also lowered the local retail price of its 160GB HDD (hard disk drive) DVD recorder to NT$14,900 (US$450), the sources pointed out. International and other local brands have followed suit by cutting retail prices by 5-10%, the sources indicated.
Taiwanese makers hope that price cuts for 32-inch LCD TVs and 42-inch plasma TVs will increase demand for such TVs and in turn push up sales of DVD recorders.
Story source:
digitimes.com.
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