GristyMcFisty reported to us via our news submit that Chinese manufacturers of DVD players are forced to stop exporting their products. Chinese manufacturers that export their DVD players have to pay royalty fees to the patent owners when they do not have intellectual property (IP) for the core technology involved in DVD players. Because of the increased competition in China and the fact that the manufacturers don't have this intellectual property about the core technology, is the point reached where the profits are eliminated by the costs for the royality fees.
Some of the companies changed to the more profitable export of portable DVD players and others continue with producing of DVD players just to hold their position in the market.
| Shinco Electronic and Malata Group, two large makers of electronic appliances in China, stated that they have stopped exporting standalone DVD players and are instead exporting portable DVD players, which are more profitable, and LCD TVs. Another maker, Shanghai General Electronics (SVA) argued that makers of DVD players do not earn any money on their products but continue producing simply to hold their position in the market.
In Shenzhen, where about 70% of China's DVD player manufacturers are located, the number of OEM makers has decreased from a peak of over 140 to 30-40 currently. |
Read the full article over at Digitimes
Source: Digitimes
