DVD-R prices driven down because of capacity expansion

According to first-tier optical storage disc makers in Taiwan '“ Ritek, CMC Magnetics and Prodisc Technology, prices for A-grade 4x DVD-R discs have been down to US $ 1.30-1.40 from US $ 1.40-1.50 in early June.

The companies' local resellers, however, said that one or more first-tier optical storage disc makers have recently sold A-grade 4x DVD-R discs at between US $ 1 and US $ 1.10, down by about 30% compared to earlier prices. Prices for B- and C-grade discs have dropped to below US $ 1, the resellers said.

In addition, second-tier optical disc manufacturers in Taiwan are selling 4x DVD-R discs at record low prices of between US $ 0.80 and US $ 0.90 and DVD-R discs with lower-speeds at about US $ 0.60, the companies said.

The falling prices are mainly seen by the industry as a result of anticipated capacity expansion of major disc makers later this year. While all the Taiwanese first-tier optical disc makers are set to expand their capacity by two to four-fold by year-end, other major disc providers, including Taiyo Yuden, Mitsubishi, TDK, Hitachi Maxell and Moser Baer India (MBI) also reportedly plan to raise their capacities by one to two-fold in the second half of this year.