Leading manufacturers of optical discs in Taiwan have decided not to match the CD-R prices quoted by their competitors in China and India (Moser Baer) since the prices would be below the Taiwan makers’ production costs.
According to the Taiwan makers, including CMC Magnetics, Ritek and Prodisc Technology, competitors from China and India are quoting a price of US$0.08 per CD-R disc. Rather than match the price and sell at below cost, the Taiwan makers are confident they can compete for CD-R orders based on the quality of their products, they emphasized. In addition, some Taiwan makers may reduce their output.
However, inventory adjustments in the channel have cut the retail stock volumes of CD-R discs to 4-6 weeks, down from 6-8 weeks last quarter, the leading makers noted.
Story source:
digitimes.com.
