Dual layer and 16x media manufacturers face low competition

Digitimes
reports that smaller DVD recordable manufacturers have a hard
time catching up with the larger ones when it comes to the production of more
technological advanced products such as 16x and dual layer media. Currently only
Ritek and CMC, MKM (Verbatim) are manufacturing dual layer media and CMC
and Ritek are the only Taiwanese companies who are shipping 16x media. The
Taiwanese companies are responsible for the majority of DVD recordable
output in the world.

Second-tier makers lagged first-tier makers by one to two
quarters in production of CD-R, CD-RW and 4x DVD+R/-R discs, the local
makers pointed out. However, for 8x DVD+R discs, the three first-tier
makers '“ CMC Magnetics, Ritek and Prodisc Technology '“ passed Philips
verification in March of this year, while second-tier makers including
Infomedia, GigaStorage, Lead Data and Optodisc Technology only recently
obtained Philips certification.

The relative small amount of companies shipping this
media will result in a higher price then when the competition is increased by
small manufacturers. However the article means clearly that the other
manufacturers are lagging behind and this means that they will catch up one day
and then it's very likely that we see the usual price behaviour downwards. Read
the entire article on Digitimes.com.

Source: Digitimes.com

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