Key component suppliers said Taiwan-based optical storage drive manufacturers can expect profit margins to remain stable in the second half of the year, citing declining prices and sufficient supply of key components as well as prospective launches of new products.

While Lite-On IT anticipates contract-manufacturing prices to slide about US$1-3 per quarter this year, it projects maintaining profit margins at 20% or above due to declining prices for key components such as chipsets and pick-up heads (PUHs). The company currently quotes CD-ROM drives at US$15-17 per unit, DVD-ROM drives at US$29-32 and CD-R/RW drives at US$38-42.

The company also disclosed that several new products developed in the second half of last year, including DVD�RW drives and slim-type combo drives, are scheduled to start volume shipments this month.

Prices are currently quoted at US$50 for CD-RW/DVD-ROM combo drives, US$90 for slim-type CD-RW/DVD-ROM combo drives, and US$140-150 for DVD+R/RW drives, but are expected to fall between US$5 and US$15 per unit each quarter this year.