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Price for DVD-R and DVD+R discs to remain stable

Time: 14:16 EST/19:16 GMT | News Source: DigiTimes | Posted By: David Gasior

Although manufacturers are expanding production capacity for DVD-R and DVD+R discs, prices are expected to remain stable in the first half of the year, as the yield rate from second-tier makers remain low, according to sources.

Production of DVD-R and DVD+R discs has a higher entry barrier than that of CD-R discs. Currently, only first-tier manufacturers can reach yields of 80-90%, while most second-tier makers are seeing yields as low as 20-30%. Some companies pointed out that it will take about one to two quarters for second-tier makers to pick up their production yield rates. As local industry leaders Ritek and CMC Magnetics are reluctant to lower prices, the market should remain stable for the first half of the year.

According to sources, 2.4x DVD+R discs from second-tier makers cost about US$0.60 per unit while those from first-tier makers cost US$0.80 to US$1 per unit. For 4x DVD-R discs, pricing is between of US$1.20 and US$1.50 per unit, but they are only available from first-tier makers such as Ritek, CMC and Prodisc Technology.

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