Lasse Penttinen
14 Jan 2005 9:59
Aggressive price competition in the OEM market. Lite-On IT and BenQ are facing the heat as Toshiba Samsung Storage Technology (TSST) announced a price cut of 30%. TSST also has some productional edge over the main competitors.
...Samsung recently lowering retail prices of its 16x DVD burners by 30% to US$69 in the US and European markets, according to the optical disc drive (ODD) makers.Source: Digitimes
TSST has the competitive advantage of self-produced pick-up heads (PUHs) and chipsets and the design capability to minimize the production costs of DVD burners, the ODD makers indicated. Lite-On IT and BenQ do not yet possess the same level of ability to minimize costs, and are therefore unable to compete on the same level, the ODD makers pointed out.
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To cope with this threat, both Lite-On IT and BenQ will speed up the development of new models, the two companies said.