DVD really explodes in China in 2001......................
globalsources.com
Outlook 2000: Mainland China
DVD: The next wave
As production techniques mature and local capacity increases, DVD player prices in mainland China will decline: They have dropped so dramatically in 1999 that some products are now below $240. "DVD prices went down by at least 30 percent, in early 1999," said Tian of Shenzhen Super.
Mainland China's DVD player market began to take shape in the past few months, with sales tripling from 1998. In September, local makers began speeding up production. As DVD players are still regarded as a trial product in domestic markets, the majority of the output was shipped abroad. "DVD player sales will explode in 2001 and will experience the biggest demand in 2002," said Chen Shi-chao, vice president of the A/V department of Sichuan Changhong Electronics.
In 2000, prices are expected to go down further. "Our output will continue rising, which will help us lower prices by a further 15 percent," said Zhan at Jiangsu Shinco, which has an annual capacity of 3.6 million units. "Next year, DVD player prices may hit $180 per unit, and $150, even $120, in the long run," said Tian of Shenzhen Super.
Current models from the mainland China boast AC-3 surround sound, MPEG-2 coding and decoding, CD, VCD, SVCD and VCD compatibility and MP3 players. Most feature full-function karaoke, and some are being developed for network applications. "We will develop a DVD-based platform that can also be used as an Internet set-top box," said Tian of Shenzhen Super. Similar functions will be added to Jiangsu Shinco's DVD player to enable Internet browsing.
But although high-end DVD players are being developed, basic versions will remain important. "There is a sourcing trend in Europe for more simple units," said Tian of Shenzhen Super.
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