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

To: Stoctrash who wrote (34149)	7/6/1998 2:31:00 PM
From: CPAMarty	Read Replies (3) \| Respond to of 50808

For CC direct call in number is 703 736-7291 date of call is 7/16/98 at 1:30pm Pacific time replay number is 703 925-2533 use PIN # 932762

To: Stoctrash who wrote (34149)	7/6/1998 7:19:00 PM
From: John Rieman	Respond to of 50808

VCD Player prices keep dropping............................... asiansources.com VCD players Competition drags quotes to a low of $70 Several compelling factors now indicate that VCD player prices are approaching rock bottom in the Asian supply. First and foremost, there has been a general industry shakeout, with many of Taiwan's producers turning away from the line. Moreover, fewer new models are being developed, and manufacturers are reluctant to reveal pricing information. VCD player prices have suffered two rounds of big cuts, amounting to a nearly 70 percent drop over the past couple of years. The trend has largely been caused by increases in output by China-based manufacturers, who are now enjoying a majority share of their domestic market -- the largest VCD player market in the world. "The greatest impact was crated by the oversupply situation in China, where VCD sales accounted for more than 80 percent of the world's total consumption of VCD players last year," said S.J. Liu, marketing director for Taiwan-based Hanpin Electron Co. Ltd. In 1995, VCD player prices in China were set at around $350, but by the end of 1996, the price had almost halved to $180. And after another price war last year, quotes fell to $120 to $150 each, with some models available for below $100. Currently, single-disc VCD players average in price from $75 to $95 each FOB, according to Sam Ho, marketing director for Hong Kong's Yanion Co. Ltd. Multiple-disc versions are priced at about $110, and 100-disc models are quoted at about $180. Hong Kong-based Great Wall Electronic International Ltd plans to cut VCD player prices according to DVD player price trends, assistant director Gregory Lam said. If the price gap between DVD players and VCD players narrows substantially, the company will cut its quotes, he added. The manufacturer's single-disc VCD players are currently priced at $110 each FOB, while three-disc versions are quoted at $135. But even these low quotes could tumble as competition heats up further; Ho predicts a 10 percent dip. This could discourage some makers from pursuing the line further. Amy Chang, manager of market communications at Taiwan's Sampo Corp., said the company has stopped exporting VCD players due to its inability to cut prices in line with market indicators. "Once the market stops expanding, buyers tend to shift their orders to producers in China and other low-overhead sites to cut costs," she said. "This hinders us from trimming costs by expanding output." According to Simon Tien, assistant marketing manager at Taiwan's Yung Fu Electrical Appliances Corp. Ltd, rapidly falling prices have forced many overseas buyers to abandon the line. Yung Fu, for its part, plans to cater increasingly to OEM clients. Taiwan's Pro-Ana International Inc. has stopped assembling VCD players in China as a result of falling export demand. It now uses housings from China and assembles all its portable and desktop single-disc players and desktop three-disc changers in Taiwan. A marketing branch has been established in the United States to promote sales to Western markets, where, according to general manager Amanda Huang, the company has seen encouraging results. - Asian Sources Electronics