Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (24816)	11/4/1997 8:19:00 PM
From: John Rieman	Respond to of 50808

Audio CD makers closing production lines. VCD is killing Audio CD player market.................................... asiansources.com Continuing price slide drags export quotes below $30, FOB <Picture>Hong Kong upgrades to anti-shock mechanisms; mainland suppliers buckle under price pressure Contents Better audio quality and lower prices of both the player and the disc are luring more buyers into the market for personal CD players. But despite the growth of the line, the region's makers are not happy. Quotes are still down following last year's 30 percent price fall, and are expected to slide further in the next six months. Aggravating the problem is a shortage of key components. Smaller firms are the worst hit because they have to course orders through agents, whose commision can increase costs 10 percent. Consequently, product development is close to a standstill. Some Hong Kong makers are introducing new models with anti-shock, but development is otherwise limited to slimming down product design. Their counterparts in China are also pessimistic about the future of the line. The video CD has eaten into the market, and prices are projected to continue their downslide in the next half-year. Some mainland manufacturers are producing the line as a side business; others are closing production altogether. Hong Kong's Star Light offers this report's lowest quote at $29 per unit, FOB. Ngai Lik's basic personal CD player is priced at $30 apiece, FOB. All makers offer anti-shock models, in several versions: 3-, 10- and 20-second. The additional cost for anti-shock ranges from $5 to $9, depending on the level. -- Asian Sources Electronics, December 1997