The price level of optical discs, due to decreasing competition, is likely to bottom out in November, which is earlier than originally expected, according to CEO Gordon Yeh of Ritek.
Yeh expressed his opinion during the Taiwan Information Storage Association's annual meeting and conference with the Japan Recording-Media Industries Association (JRIA). Because of a short supply of polycarbonate (PC), small makers of optical discs will be forced to reduce or even temporarily stop production next month or shortly after that, Yeh indicated.
As a result, competition will relax, and prices may rise since the small makers are the main contributors to declining prices, Yeh pointed out. However, the price level will not rebound significantly until the first quarter of 2005, Yeh added.
In addition, the technology of optical discs is moving towards higher storage densities, Yeh stated. He predicted that global demand for DVD+R/-R discs will grow to 3.5-4.5 billion discs in 2005.
Story source:
digitimes.com.
