Taiwan Retail prices of CD-R not following OEM price hikes

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Although CMC Magnetics and Ritek have raised their OEM quotations for blank CD-R discs by 8-10% for the first quarter of 2007 and second-tier makers, including Prodisc Technology, Lead Data and Gigastorage, have followed suit by hiking their OEM prices by 5-8%, retail prices in Taiwan currently remain unchanged, according to retail channels.

Retail prices of CD-R discs in Taiwan, in the wake of an OEM price increase, went up slightly by NT$30-50 to NT$499-799 (US$15-25) for a pack of 100 discs in November and December of 2006, the sources indicated. This was mainly due to increased demand during the traditional peak sales period, the sources pointed out. As retail channels and outlets currently have a CD-R disc inventory for four to six weeks, there is no room for them to hike retail prices, the sources noted.

The CD-R discs currently in the inventory of retail channels are without Veeza licensing, the sources indicated, adding that Veeza CD-R discs will be delivered to retail channels later. Since the cost of Veeza CD-R discs are higher due to royalty payments and the fact that Taiwanese CD-R disc makers plan to stop production during the Chinese New Year holiday in late February, the retail price of CD-R discs are expected to rise in March, the sources pointed out.

In related news, retail prices of Grade A blank 16x DVD+R/-R discs in Taiwan currently also remain unchanged at NT$999-1,199 (US$31-37) per pack of 100 discs.

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