Cube's most resent decline started because of money managers throwing out stocks that they thought had exposer to Asia. The decline has continued because of news from China stating that a second VCD price war had broken out. The last price war really hurt Cube's revenue and earnings. However; this war seems to be having less of an impact, because Tiawan's currency has declined 30% since late Summer. Tiawan Semiconductor is a major fab for C-Cube, and ESST.
Let the war begin!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Idall VCD player gets cheaper
GUANDONG Idall Electrical Appliance Co Ltd, one of China's leading video compact disc (VCD) player makers, further sharpened its competitive edge by a major price-cut and a comprehensive service programme.
In the light of the campaign that began this month, Idall slashed the prices for all varieties of its products by about 500 yuan ($60.24) to about 1,330 yuan ($160.24)a 27% cut and began setting up a nationwide service network.
The move took place when the domestic VCD market heated up with fierce competition.
In the price war waged by Idall this summer, Idall cut its prices by 20-30 per cent. As a result, the company doubled its production and significantly enlarged its market share from 10.6 per cent.
A second price war has already begun with seven major VCD player makers announcing their much lowered prices.
Marketing experts said that Idall's new move was bound to put a lot of pressure on other firms which would eventually force the whole industry to improve services and lower prices.
Starting early next year, the Idall service network is designed to regularly offer its customers free disks on audio-video information, books on motion picture information and discounts at the over 1,000 AV stores on the network.
"With the practice, purchasing will become a kind of investment for our customers which serves as a win-win solution," an Idall manager said. (CD News)
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Date: 11/05/97
Author:
Copyrightc by China Daily |
