OEM prices for 16x DVD burners is expected to fall from US$45-50 currently to US$40 next quarter or in the fourth quarter of this year, further forcing second-tier makers out of the market, according to associate vice president Alpha Tasi of BenQ's storage business unit. Pioneer and Sony, the only Japanese brands relying on their own production, will be subjected to production cost pressures arising from the further decrease in OEM prices and therefore are expected to begin outsourcing production on an OEM basis, Tsai pointed out. BenQ and Lite-On IT are poised to compete for OEM orders from then two Japanese companies, Taiwanese makers of optical disc drives said.

BenQ aims to deliver 15 million DVD burners of all speeds this year, 2.5 times the six million units sold in 2004, Tsai indicated. Lite-On IT shipped eight million DVD burners last year and the delivery volume for this year will very likely exceed 10 million units and quite possibly even 16 million units, according to the company's Optical Disc Drive Business general manager Michael Gong.