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Lite-On IT and Quanta Storage Plan to Raise Optical Drive Prices
According to a source citing industry representatives, Lite-On IT and Quanta Storage, the largest Taiwanese manufacturers of small-sized optical drives, intend to raise prices for their products. The increase is planned for the third quarter of this year and will amount to 3-10%.
The reason for the increase was the increase in costs. The fact is that key materials and components used for the production of optical drives have risen in price so much that Lite-On IT and Quanta Storage can no longer compensate for the increase at the expense of their own resources, and are forced to raise the price for customers. So, materials for solder have risen in price over the past year by 30-40%, motors – by 10-15%, power supplies, cables and cords – by 25%.
The mentioned manufacturers have notified their customers of the increase. According to the sources, some of the clients have already accepted the new terms, while others are negotiating.
Price hikes by Lite-On IT and Quanta Storage could signal similar action from Hitachi-LG Data Storage (HLDS) and Toshiba-Samsung Storage Technology, two of the three largest optical drive manufacturers in the world.