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Contract prices for 40x CD-RW drop to $50

As a result of strong market competition, contract prices for 40x CD-RW drives reduced to $50 or even sometimes to $46-48. As some companies plan to transit to 48 and 52 devices, in the second quarter of this year Samsung, Hitachi LG Data Storage and a host of Taiwanese firms increased production volumes that resulted in 10-15% price cut comparing to the first quarter.

This situation with 40 CD-RW drives will lead resellers to sell 24 and 32 quickly. According to some distributors, prices for such also reduce by 10-15% per month, not per quarter.

Many Taiwanese makers report increased profits: Lite-On IT — by 31%, Benq — by 20%, and others — by 10%. Nevertheless, with stronger competition and cut prices they do not have over ten bucks per drive as before :).

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