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Technology Stocks : ESST-the new beginning.

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To: Steve Reinhardt who wrote (2378)	2/12/1999 2:44:00 PM
From: DiViT	Read Replies (1) of 3493

John R. on the Cube thread is on a VCD roll... Good that ESS is focusing on those higher margin products... asiansources.com VCD players 10 percent dip in prices this year Mainland makers say prices are likely to plunge in the coming months. The consensus in Hong Kong is much the same. Wai Kai Electronics and SMC Multi-media forecast a dip of more than 10 percent. Devaluations in many Southeast Asian countries, says Ho of SMC Multi-media, are the major cause of the pricing squeeze. Yanion cut its prices by 25 percent between 1997 and 1998 because of competition from mainland China and Taiwan. The firm's SVCD models may, however, have a more stable pricing, Ho said. Similarly, Tung Da Audio dropped its VCD player pricing from $90 to an average of $65 in 1998. This year might see that pressure abate, says the firm's Yung.

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