Sony to stop DVD recorder production, Lite-On likely takes over


GristyMcFisty used our news submit to tell us that Sony will quit the production of DVD recorders, but will remain on the market with their brand name. The Japanese company came into the market with the much sold Sony DRU-500A, at that time the first DVD recorder that supported both DVD+RW and DVD-RW. Nowadays there are a lot of companies that manufactur DVD recorders and also the competition from Taiwanese companies have made prices of DVD recorders and therefor also profit margins. Sony will now likely sell Lite-On DVD recoders by their brand name.

Sony, Pioneer, NEC, and Toshiba as well as South Korean makers dominated the global production of DVD burners early this year. Several Taiwanese companies, including Lite-On IT, BenQ, Quanta Storage, Behavior Tech Computer, Asustek Computer and Accesstek, entered the market beginning in the second quarter.

The participation by Taiwanese makers has resulted in price competition, causing a drop in OEM prices of DVD Dual burners from US0-180 per unit to US0-130 currently, Taiwanese makers indicated. The OEM prices of DVD+RW models have even fallen to below US0.

Under the price pressure, Sony has decided to halt its production of 8x DVD burners and models of higher speeds and then place OEM orders with Taiwanese companies. Lite-On IT, due to its close relationship with Sony, is the most likely to be Sony's partner, Taiwanese makers pointed out.

In the past Sony also used Lite-On CD-RW drives and sold them by their own name. However Sony has almost always given a personal twist to the drives, making them just a little different then the drives sold by the Lite-On brand name. Discuss this in our Recording Hardware Forum.

Source: Digitimes.com

No posts to display