August 30, 04

Taiwan motherboard giant Asustek Computer recently unveiled its forst 16x DVD Dual DL (single-sided double-layer) burner model, the DRW1604-P. It features writing speeds of 16x for DVD+R/R, 4x for DVD+RW/RW. 4x for DVD+R D, 32x for CD-R and 24x for CD-RW as well as reading speeds of 16x for DVD/ROM and 40x for CD-ROM.

The company also projects that its optical disc drive (ODD) shipments will total 10-15 million this year, which would make Asustek the fifth-largest ODD producer in the world.

Asustek indicated that it has been ready to produce the DRW1604-P for a while already, but delayed the launch on consideration of its cooperation with Pioneer, to which Asustek current ships 200,000 - 300,000 DVD-ROMS on an OEM basis for Pioneer, which is to be extended to DVD burners soon.

Asustek hopes to adjust the split of its ODD production from 30% for OEM and 70% for own brand sales, currently, to a ratio of 40% to 60%.

The company expects its total monthly shipments to exceed on million ODDs beginning this months, and its annual delivery volume to reach 20 million units in 2005 or 2006. making the company one of the world's top three makers.

In related news, Lite-On IT, Taiwan's largest manufacturer of optical disc drives has started volume production of 16x DVD Dual (+RW & - RW ) burners for ODM/OEM clients by the end of this month clients, according to general manager Michael Gong of the company's Optical Disc Drive Business Unit.

Lite-On IT currently ships more than 600,000 12x and 8x DVD burners monthly. The company expects 16x models to become the mainstream with monthly shipments exceeding one million units in the fourth quarter of this year.

Cost pressure also here: Due to a price war triggered by Japanese makers such als Pioneer and NEC, OEM quotations for 16x DVD burners have dropped to US$ 95 - 100. according to Taiwanese OEM makers. When firms like Lite-On and BenQ started mass production of 16x burners, Japanese makers immediately responded by offering lower prices, which then the Taiwanese makers immediately matched.
Currently, OEM prices are US95-100 for 16x DVD+RW burners, with Dual models topping the list at US$ 5 - 10 above that.