Even with retail prices for entry-level DVD recorders dropping from US$299 (£160) to US$149 (£80), global demand is falling short of original expectations during the traditional lead-up to the Christmas season, according to leading Taiwan OEM makers Lite-On IT and Eastern Asia Technology (EastTech).
Smaller than expected demand is a result of prices remaining too high and user-interfaces not being easy enough to use, EasTech pointed out. For the year, the industry's total global sales volume will not exceed eight million units, much smaller than the 13 million projected early this year, EasTech indicated.
Lite-On IT produces DVD recorders for a few OEM clients as well as its own-brand products, mainly for sale in Taiwan. This month, Lite-On IT expects to ship 180,000 DVD recorders, with 75% of the volume produced for OEM clients.
According to other Taiwan makers, large American retail channels are seeking Taiwan makers to produce DVD recorders for next year, with OEM prices as low as US$99 for entry-level models. For the time being, Lite-On IT is unwilling to accept orders with such low quotations since that would leave the company almost no room for profits, these Taiwan makers said.
Story source:
digitimes.com.
