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

To: J Fieb who wrote (29519)	2/15/1998 11:55:00 AM
From: BillyG	Read Replies (1) \| Respond to of 50808

Titanic-like DVD releases will help generate interest in DVD. DVD in China....... techweb.cmp.com Excerpts: Jumpstarting the DVD business Let's face it, DVD player sales were lousy last year. Global shipments hit only 700K units, estimates InfoTech, and that includes a lot of inventory on store shelves. Now it looks like some 2nd tier suppliers may be trying to jumpstart the business and get a leg up on top-tier vendors, Junko Yoshida reports in EE Times. This past week executives from LSI Logic and Sanyo were touring China, meeting 3 or 4 potential DVD makers and distributors a day. If they are successful, China could prove to be not only a key market for DVD players but a production engine for the global market. This could jeopardize the ability of top-tier players like Sony and Toshiba to recoup DVD investments. Also offering DVD OEM kits to the Chinese is C-Cube Microsystems, the dominant supplier to China's booming video-CD OEM market. Will China lead the way in DVD? LSI Logic and Sanyo figure that Chinese consumers, who account for the vast majority of the world's video-CD sales, are primed for a digital-video upgrade, Junko Yoshida writes in EE Times. "China has a potential to become a stopgap market for DVD-component and -hardware manufacturers," says SRI Consulting's Michael Gold. Some market watchers even predict China will become the source for the world's lowest-cost DVD players within the next few years. Cost is a driving factor in the LSI/Sanyo alliance. Their goal is to drive the DVD player's bill of materials down to $150 by yearend, making possible a retail price of $200-to-$250, which they say is necessary to open up the Chinese market.