In response to a report that China-based TCL recently landed OEM orders for DVD+R/-R discs from Samsung and LG, major Taiwanese makers of optical discs indicated that they are not under substantial competitive pressures because the OEM orders.
The orders are expected to be relatively small in volume, plus, the makers noted, TCL has inferior manufacturing technology for DVD discs.
Sony, Philips and TDK are leading global vendors of own-brand DVD+R/-R discs, whereas Samsung and LG are smaller in terms of volume and known for their price-oriented placement of OEM orders, the makers pointed out.
TCL has offered OEM prices 3%-5% lower than quotations by Taiwanese makers, in order to compete for orders for DVD+R/-R discs, and this may be the reason for TCL obtaining orders from Samsung and LG, the makers noted.
Prodisc Technology and Optodisc Technology are two main Taiwanese OEM makers of DVD+R/-R discs for Samsung and LG. Optodisc is not sure whether Samsung has placed orders with TCL but has recently received additional OEM orders from the South Korean company. However, Optodisc is unable to satisfy the additional demand because its production capacity is full, the company said.
TCL has comparatively small production capacity of three million DVD+R/-R discs a month and the company's manufacturing technology is focused on low-end discs, 4x or below, CMC Magnetics and Ritek pointed out. TCL will not have an impact on their business, at least the moment, the makers added.
Story source:
digitimes.com.
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