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To: John Rieman who wrote (37980)	1/4/1999 12:57:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

Chinas DVD player market takes off -2 12/31/98 Xinhua news agency - ceis (copyright 1998) Beijing (ceis) -- experts pointed out there is a great potential demand for DVD player in china and that digital technology will make DVD players more competitive. Home-made DVD players priced around 2,500 yuan now have been put on sales in Beijing. DVD players priced less than 2,000 yuan will be put on the market next year, according to a seminar on DVD players and market held here recently. Dingtian group of Sichuan province will put on the market 1,998-yuan DVD player in 1999, said Chen Yaping, general manger of the group. According to Chen, the group will produce 500,000 sets of DVD players next year, including 300,000 for the home market and 200,000 for export. The other domestic DVD player producers, including Jiangkuai, Gonghe, Jingcai, Shinco and Changhong, also expressed their intention to lower prices of their products to less than 2,000 yuan. Shinco, the largest VCD player producer in the country, announced that it would cut the price to 1,990 Yuan early next year. Besides domestic enterprises, some foreign DVD player producers are flocking to scramble for a market share with their Chinese rivals. Pioneer co., One of the vanguards in developing DVD technology, for instance, has built a factory to produce high-tech DVD player products in Shanghai; Sony co. Is marketing its state- of-the-art DVD player chip in china and it will focus on marketing chips for less than 2,000-yuan DVD players next year; Philips will put on the market the 2,800-yuan DVD player. To challenge the price competition of foreign giants, Chinese producers have to spare no efforts in shrugging off their dependence on the imported chips of DVD players. Dingtian group has basically localized the production of key parts of DVD players, according to Chen. With the improvement in technology and expansion in production, the DVD player price is likely to break the 2,000 yuan point, noted market analysts. In the meantime, the price of DVD will be slashed next year, removing the barrier for the popularization of DVD players. According to the state press and publication administration, seven enterprises have been approved recently to import eight DVD production lines and one DVD parent disc production line, and the Nanfang Electronic Audiovisual company has successfully renovated a DVD production line. With the localization of DVD production equipment, DVD will be put on the market on a large scale soon and the price will slip to 20-40 yuan next year. Market analysts agreed that as the DVD player price falls to less than 2,000 yuan and DVD price become acceptable to ordinary families, Chinas DVD player market will grow rapidly.