Prices for recordable DVD pick-up heads (PUHs) are expected to drop by an average of 7-10% in September due to increased supply and stronger pricing pressure from downstream customers, according to DigiTimes. According to sources, most major Japanese PUH suppliers plan to lower the prices this month. While some companies have already cut their prices, others expect to follow suit in the near future. Currently, the PUHs are quoted at US$35-38, sources said.

As major suppliers have aggressively expanded capacity, PUH supply has increased in recent months. Taiwanese optical storage makers, which had been suffering from short PUH supply, are expected to secure 150,000-200,000 units in September, up from only 30,000-50,000 last month, sources said.

Falling average selling prices (ASPs) of recordable DVD drives is another reason behind the price cut. Facing the plunging drive prices, manufacturers are making great efforts to lower the cost of key components, including PUHs and chipsets, sources said.