dolphinius_rex wrote:yeah, I'm not trying to say that higher prices always mean high quality standards, my experiences with Plextor contradict that on a daily basis!

I'm just saying that with optical media, this is what is happening, and what will continue to happen
Actually, given the way things are going, I'm expecting more then one major player in the media business to go under, and hopefully a good chunk of the smaller guys.
The fact is, things are insane right now. It's like a freaking mafia trying to get retail stores to carry your product. You need to have an inside to the business, and provide MAJOR kickbacks to purchasers. I'm *NOT* kidding! Prices have to be bloody low, and it's not uncommon to quote below cost in the hopes of upping your own production quantities to the point of breaking even, or maybe making .1 of a penny per disc. This is what is considered *NORMAL* at this point. And with new media types and speeds just blazing through the market, especially with drives being brought out WAY before the media is available, no company can even recoup their R&D costs for the new media types. I expect that dual layer media will either save or destroy the industry, but I wouldn't be surprised at all to see Ritek fall apart and take a good chunk of the industry with it.
You don't understand Taiwan. They need their industry to pay for the defense.
I predict the DVD media price could be lowered to one fifth of the current market average and even then none of the largest manufacturers would go out of business. Not in Taiwan.
Once in the 1990s, the Sony CEO said it'll be months if South Korea opens the door for the Japanese makers before all South Korean makers go out of business. Things have changed so much since then. It'll be Sony rather than any of the South Korean makers to be out if both countries accept the other at once. It's not necessarily because Sony is making bad strategies.
Quoting under the total cost is nothing new either. South Korean companies still do that in order to export. Without export, the whole country disappears. In the long run, that's necessary for both survival and growth.
In the media industry as a whole, profitability has much increased in the last one year. The total number of units produced has not increased much. The average unit selling price has increased very much and will still go up due to Blu-ray, DVD-RAM, DVD+R DL, and probably more. Though a lot of manufacturers and resellers complain about competition and price wars in general every time, there are always new entries to the competition and existing ones reap more profits. Ritek couldn't ever dream 50% profitability could be possible when they were only making CD-R disks. For the first time in their history, they can now invest multi-billion USD in R&D if they want to. This is a recent report from DigiTimes, a local Taiwanese newspaper for the greatest benefits to the Taiwanese industry.
Lead Data, a second-tier manufacturer of optical discs in Taiwan, expects to cease reducing its CD-R stock volume by the end of this month and hopes to raise its OEM quotation next month, according to the company.
CD-R prices have hit bottom, forcing many makers in China to shut down their operations while others have reduced production. Lead Data is adjusting its inventory levels to help stabilize CD-R price levels and help the market rebound, the company indicated. Although Lead Data is unable to push up CD-R OEM price levels alone, the company is optimistic about the CD-R pricing outlook.
Lead Data’s current domestic monthly capacity is 30 million CD-R discs and five million DVD-R discs. The company also has a Hong Kong factory with a monthly capacity of five million CD-R discs. Sony is Lead Data’s largest customer, receiving 80% of the company’s output.
So many users on the most popular web forums criticize Lead Data quality. Yet even Lead Data enjoys such a growth. Five million DVD-R a month is 60 million each year. Since they like to double production every few months, it's likely the company will have produced more than one billion DVD recordable media by 2006.