DigiTimes has reported that a smaller than expected demand has caused an
oversupply of CD-R discs. In response, Taiwan's second-tier manufacturers have dropped OEM quotes below $0.10.
The lower
than expected demand for CD-R discs is mainly because brand and retail channel clients in the US and Europe had replenished their
inventories in the first quarter of 2007 and therefore placed few OEM orders this quarter. Additionally, the unexpectedly strong sales of
digital music players around the world has diminished demand for CD-R discs, the sources pointed out.
In response second-tier
makers in Taiwan have cut prices to compete for few OEM orders resulting in the low OEM price levels, the sources indicated. In addition
to CD-R discs, they have reduced OEM prices for blank 4-8x DVD+R/-R discs to as low as US$0.12, the sources noted.
These
prices probably won't last long. The article points out that the cost of optical-grade polycarbonate is slowing increasing due to the
price of crude oil. If you'd like to read more, head on over to DigiTimes.
