Prices for CD-R and DVD±R Media May Go Up
It's not a secret that products labeled with popular brands are made on OEM terms by other companies. E.g. Taiwanese CMC Magnetics is one of the largest manufacturers of optical media.
In addition to the 10% increase of CD-R and DVD±R OEM prices planned for August, CMC Magnetics is going to adjust prices upward again in Q4. The reason is that the increase in August will barely allow to compensate increasing production costs. OEM prices have been dropping for the last 2-3 years due to local competition, pointed out company chairman Robert Wong.
The company has not decided yet the amount of quote adjustment. It will depend on the size of additional income that CMC will require to reach the breakeven point in 2008 and profitability in 2009.
About Blu-ray Disc (BD) media CMC is more conservative. Wong believes that growth of investments into BD production is restrained by royalties. By the way, production of CBHD media (China Blue High-definition Disc) might become more attractive from this point of view. Anyway, according to Wong, 2009 may become a turning point for the BD market.
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