Lite-On IT to become world's largest maker of DVD burners

GristyMcFisty used our news submit to tell us that LiteON has received OEM orders for half height DVD burners through the NEC / Sony alliance according to sources. If this information proves to be true LiteON will replace Hitachi LG data storage (HLDS) as the biggest maker of half height DVD burners next year. LiteON has been tight lipped about this information and has made no comments, sources say the shipments will begin in April 2006.

The fact that OEM prices for DVD burners have collapsed to a low of $35-40 has put NEC under increasing pressure from the competition. This is the likely reason that NEC would have sooner or later turned to OEM production for its DVD burners. Figures for DVD shipments this year show that Hitachi LG data storage will ship 19.72 million drives followed by NEC with 10.87 million and LiteON with 10.45 Million. If LiteON makes all NEC's dvd burners it will make the total number of drives shipped by LiteON rise to 21.32 million.

LiteON Lite-On IT has reportedly obtained OEM orders for half-height (H/H) DVD burners from NEC through its strategic-alliance partner Sony, according to industry sources. If true, Lite-On IT stands a good chance of replacing Hitachi-LG Data Storage (HLDS) to become the largest global maker of H/H DVD burners next year. Lite-On IT, however, declined to comment on the report.The sources pointed out that shipments for the OEM order are to begin in April 2006.

Viewing that OEM prices for H/H 16x DVD burners have dropped to as low as US$35-40, NEC is under increasing pressure from competition and must turn to OEM production sooner or later, the sources indicated.Taiwan Securities Investment Advisory, quoting a forecast by Japan-based Techno Systems Research (TSR), indicated that HLDS will ship 19.72 million H/H DVD burners this year, followed by NEC with 10.87 million, and Lite-On IT with 10.45 million units. If NEC releases all of its OEM orders to Lite-On IT, the latter would have a larger shipment volume than HLDS.

Source: Digitimes

No posts to display