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: John Rieman who wrote (27930)	1/10/1998 1:25:00 PM
From: DiViT	Respond to of 50808

Challenges Mingle with Chances for China's VCD Players 01/09/98 Xinhua English Newswire (Copyright 1998) Chinese consumers are expected to buy 11 million video compact disc ( VCD ) players in 1998, up 29 percent from 1997, according to China's Ministry of Internal Trade. Such brands as Shinco, Malata, Idall and Samsung are expected to remain popular. China is considered a world leader in the manufacturing of VCD players. Chinese manufacturers of VCD players have become major factors in the domestic market. Their market share of VCD players in December last year rose to 85 percent from 72.2 percent in January of 1997. Jin Zhenglong, an official of the China Association of the Electronic Stereo System Industry, expressed his confidence in the market potential of VCDs in 1998. He supported his prediction by saying that in China's relatively developed large and medium-size cities, only one-tenth of the households are equipped with VCD players. These areas are the major consumers of the machines. Big price cuts in the past year have also enabled people in some rural areas and small cities to afford the machines, Jin added. However, the prospects are not all optimistic. Domestic manufacturers are faced with new challenges in the new year. VCD player production and sales are expected to be even less balanced. The 30 biggest plants out of 400 plans to turn out 30 million players this year. Total production will reach 50 million units, far exceeding the market demand. The lowest price for a VCD player is 1,000 yuan, leaving little room for further price cuts. All major manufacturers of VCD players are aware of the competition and the need to advertise. Nine of the VCD manufacturers won the bidding for the 12 vacancies in the prime time slots on China Central Television, a nationwide TV network. The recognition of brand names and improvement of service quality are increasingly important to manufacturers in the intensifying competition. Hu Zhibiao, general manager of Idall, said: "Those with better quality and services will be the winners. Service wars and brand recognition wars are the main stream of the competition." Idall became the "king of the bidding" by offering 210 million yuan for CCTV ads.

To: John Rieman who wrote (27930)	1/10/1998 1:26:00 PM
From: DiViT	Respond to of 50808

Overproduction of VCDs in China 01/09/98 AsiaInfo Daily News Service Page 8 Copyright AsiaInfo Services, Inc. - Distribution by license only. CHINA, January 9, AsiaInfo Services, Inc -- Recently a serious overproduction of VCDs appears in China. According to the Ministry of Electronics Industry, last year 11.85 million VCDs were produced by 30 key VCD enterprises in China. If we plus some small plants, the total output in China exceeded 15 million. But the demanding volume of the whole Chinese market hovered at 10 million. Many unfavorable factors made the profit margin of many VCD enterprises fall from 13 percent to 8 percent. It is estimated that this year the VCD industry will see a greater decreasing margin in the average profit margin.