OEM quotations for 16x DVD burners have dropped to about $40 due to intense competition for orders from leading vendors such as Pioneer, NEC, Lite-On IT, BenQ, HLDS (Hitachi-LG Data Storage) and TSST (Toshiba-Samsung Storage Technology), according to Taiwan-based makers of optical disc drives (ODDs).

The new price represent a drop of 12-20 per cent from the recent OEM prices of $45-50. However, there is still room for further decreases in the OEM price of 16x DVD burners in the second half of this year, but the cuts are expected to be much smaller, as the vendors’ gross margins have already declined to low levels, the sources pointed out.

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