"As prices continue to decline, these products will become even more appealing to consumers,"' said Mary Craig, principal analyst for Dataquest's Optical Disk Drives Worldwide program. "The most popular CD-RW drive application is the recording of music on inexpensive CD-R media, which costs under one dollar, and the price of CD-RW media is now around two dollars. This makes CD-RW a more attractive alternative to other removable storage media, which costs seven to nine dollars for high-capacity floppy disks with about four to five times less capacity than CD-RW discs."
Dataquest analysts believe that part of the initial success of CD-RW can be attributed to Hewlett-Packard when it broke the $1,000 price barrier for CD-R drives in 1996. Another factor for CD-RW's success is that user demand for DVD-ROM has been soft.
"The CD-RW market will continue to grow as long as there are multiple rewritable DVD formats,'' said Mrs. Craig. ``The fact that several formats exist for rewritable DVD means that incompatibilities exist, which ultimately thwarts mass-market acceptance. Discussions are taking place to attempt to resolve these incompatibilities, but this will add cost to a drive that was initially meant to be the low-cost, high-capacity replacement of CD-ROM.''
Additional information on this market is available in the Dataquest Perspective "CD-RW-The Dark Horse". The Perspective examines the CD-RW market and presents the reasons Dataquest is predicting that optical drive products will be the dominant high-capacity rewritable removable storage device on PCs by the end of the next decade.." NULL