To: J Fieb who wrote (44660 ) 9/12/1999 4:30:00 PM From: John Rieman Respond to of 50808
The Asian DVD ramp begins........................globalsources.com Cover story: DVD players Posted: Aug. 12, 1999 Output increases dramatically as DVD takes off in Asia DVD is rapidly moving to fulfill its promise. Software libraries are growing exponentially, and consumer acceptance is on the increase. With the technology starting to prove its potential, East Asia's cautious manufacturers have decided to engage in production, and to engage Japan's manufacturers in competition for market share. Korea's two leading consumer electronics firms, Samsung Electronics Co. Ltd and LG Electronics Inc., are already churning out DVD players in the hundreds of thousands, and their targets of 10 percent share of the US market are probably realistic. Hong Kong's larger makers also claim to be shipping 10,000-plus low-end units per month. Taiwan has been slower to pick up, but is starting from a base of almost zero audio production; so output figures of 5,000 pieces per month are commendable. A new Acer factory in mainland China will add 100,000 OEM players per month to the island's overall total by 2000. The mainland itself remains something of an unknown quantity. Sources there claim at least 12 firms are ready to move to large-scale production, with the first scheduled to do so in September. But much depends on how easily VCD production lines can be turned over to DVD production. The mainland's largest maker of VCD players claims it is ready to put out 300,000 DVD players per month; at least one Hong Kong maker is profoundly skeptical. Prices across the region are tumbling, even before most makers achieve economies of scale. Few makers cite FOB quotes that would support these levels, but most believe that retail prices for the most basic units will duck below $200 by the turn of the year. If they do, check with your supplier to see what you're buying. Taiwan's vendors believe the promise of local component supplies in the fourth quarter will enable them to cut quotes by as much as 50 percent, which would support a sub-$200 retail price. One Hong Kong maker, however, cautions that extreme low prices around the region might indicate the use of unlicensed technology. Caveat emptor.