VCD in Korea. Pared down machines for attactive prices. We've hit the $100 price point. Bring on the New Year........................
asiansources.com
Asian Sources Electronics
October 1997
Korea suppliers mass produce pare down features
<Picture>KOREAN FIRMS are riding out the price downtrend with mass production and basic features. No, they are not worried about competition from DVD, because the price factor makes VCD way ahead in the race, they say.
"I think consumers, particularly the Chinese, prefer video CD players whose CDs are widely circulated and are much cheaper," said export manager J.H. Park of Lotte Electronics Corp.
The need to slash prices has forced Lotte Electronics to delete unnecessary functions, Park said. In July, video CD players from the firm sold at $140 a set. By year end, they are forecast to fall to $120.
The LVD 824 uses MPEG-II ICs and offers karaoke functions. The firm plans to add karaoke chips accommodating songs and characters to cater to a Chinese market.
Hyundai Electronics Industries Co. Ltd has similarly had to delay the release of its more upscale model.
"Value-added functions and features come second to price. We are holding our newest model, the HAS-500," an official said. The HAS-500 holds 51 VCDs. While the firm continues to cut quotes, the reduction rate is slower than in previous years.
The lowest price from Daewoo Electronics Co. Ltd is $100 a set for single-CD models and $150 for three-CD changers.
New models are expected for release, but optical media export manager S.C. Lee forecast three-CD changers will gain greater market dominance.
"Our future marketing will focus on coping with market needs. For example, two new models slated for October will have a digest function and Chinese OSDs to satisfy Chinese consumers," Lee said. |
