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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: BillyG who wrote (21103)8/22/1997 10:05:00 AM
From: BillyG   of 50808
 
DVD-ROM in PCs...............

japanbiztech.com

DVD Drives Become Key Accessory
for High-End PCs

TAIPEI -- Since the digital video disk format's launch in November
1996, local electronics manufacturers have been carving out a market
niche by developing DVD-ROM drives and distributing DVD-ROM
disks for movies.

As a DVD-ROM standard was finally decided in the spring of 1997,
the product immediately became the talk of the information industry in
Taiwan.

Local companies, including Acer Peripherals Inc., Lite-on Technology
Corp., Behavior Tech Computer Corp. and First International
Computer Corp., all expressed interest in adopting DVD drives to
replace CD-ROM drives as an accessory for their desktop and
notebook computers.

However, it was not until Intel Corp. announced a plan to launch the
Pentium II and 233MHz Pentium in the fall that these companies began
to act on their plans. Manufacturers said cost was the major reason for
the delay in their plans.

Since the supply of DVD drives was dominated by Japanese
manufacturers that sold their products at US$150-US$200, [Toshiba's lptop drive at $500 must include a decoder] computer
prices can be driven up and spark buying interest among average
consumers if DVD drives are added.

Now that the Intel is introducing its high-end processors, local
manufacturers see that it is the right time to combine DVD drives with
high-end PCs.

IBM Corp. announced it will install a DVD drive in its Aptiva desktop
computer.

New entrants to the notebook PC market -- Asustek Computer Inc.,
Lite-on Technology and Umax Data Systems Corp. -- also have
decided to install their notebooks with 1x speed DVD drives.

The insufficient supply of DVD software and the difficulty in obtaining
authorization for DVD movie disks seem to be the two major problems
facing the majority of DVD drives so far.

However, local manufacturers expressed optimism over the future of
the product, hinging high hopes on an expanding the market for
high-end computers with DVD drives.

Commercial Times, Taiwan - 08/21/97
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