DVD Market Mixed

The DVD player market has slowed after years of robust growth, according to a new study by isuppli. The output growth of DVD players in the next two years is 22% and 2% respectively, according to Isuppli, and the growth of its production will be a long way from 2006 onwards. There are three reasons for this: (1) In view of the increase in inventories, the market for DVD chips has fallen rapidly since June this year, and (2) the rapid growth of player production has affected the entire supply chain, and (3) the surge in inventories and the decline in sales have led to a meager profit, with players having to reduce production or change careers Figure 1 is the output forecast for DVD player.
Meanwhile, the price of DVD recorders has attracted a large number of consumers. Production of DVD recorders is expected to grow "wildly", with growth rates of 233.4%, 69.9% and 59.5% in 2004, 2005 and 2006 in turn. On the whole, it is the growth of DVD recorders that compensates for the decline of the DVD player and keeps the DVD market growing. Figure 2 predicts the output of DVD player, VCR and its market growth. Li)

Fig. 1 Output forecast of DVD player

Figure 2 DVD Market Growth forecast