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CD-R and DVD ± R discs may rise in price
It’s no secret that well-known brands are produced on OEM terms by completely different companies. For example, one of the largest manufacturers of optical media is the Taiwanese company CMC Magnetics.
As it became known, in addition to the 10% increase in OEM prices for CD-R and DVD ± R media previously scheduled for August, CMC Magnetics is going to raise prices for its OEM customers in the fourth quarter. The company is pushed to increase prices by the need to improve economic indicators – simply put, selling optical discs at the same prices becomes unprofitable. This information was provided by a source with reference to the head of the company, Robert Wong (Robert Wong).
The August increase will barely offset the effect of rising production costs, so the company will have to revise prices again, Wong said. The fact is that over the past two to three years, OEM prices have been steadily declining under the influence of competition from small manufacturers.
Until the company decided how much to raise prices. This will depend on how much additional income is required by CMC in order for the losses with which it ended the first half of the year to reach positive balance sheet indicators by the end of the current year or the beginning of the future.
CMC takes a wait and see attitude when it comes to Blu-ray Disc (BD) release. According to Wong, the growth of investments in this production is still constrained by the size of royalties. By the way, the release of CBHD discs may be more attractive in this respect. The turning point for the BD market could be 2021, concluded Wong.