DVD industry profits fell into the freezing point enterprise transformation into policy

DVD industry since last year many manufacturers collective after the collapse of days is not easy, while the foreign patent group high patent fees, the other side is almost "freezing point" of the industry's profits. Affected by the environmental impact of this industry, many manufacturers are eager to change the industry, and actively looking for new breakthroughs in industrial growth. As a result of several years of low price mopping up, the rapid rise in the popularity of DVD players. According to VSDA data, as of the end of 2003, the United States has 53% families with DVD player, Screendigest study also showed that the proportion of households in Europe with DVD player has more than 34%, the European market of traditional DVD players will become increasingly saturated, the rest of the world market growth will be slowed down. DVD market growth opportunity, therefore most of the industry there are questions about the 2005 DVD market prospects.

On the embarrassing situation of the DVD market in 2005, before the global sources said in a published China sourcing report: DVD player and recorder in the report: at present, the world every 10 DVD player will have 9 sets of sales for Chinese mainland production. The number of manufacturers in the mainland of China has fallen from more than and 400 in a year ago to about $150, due to fierce competition and lower prices.

The report shows that in 2004 China made DVD player and recorder output reached 92 million units, an increase of more than 8% in 2003. Of which 85% of the products, that is, the 78 million 500 thousand domestic dish machine companies have restructuring. Due to the local DVD vendors have been "for others to do the wedding dress". In the case of the DVD dish machine market bleak future, they have to seek a way out.

Global resources China Information Manager Xie Hua pointed out that the industry has been out of the more than and 200 disc factory, there is a large part of the area is concentrated in the Guangdong screw factory". Some of these enterprises annual output is less than 100 thousand units. However, due to small businesses, small boat U-turn, they have been restructuring.

Some of the stronger disc machine companies can not carry the patent stick pressure. Wuxi Dongqiang Digital Technology Co., Ltd. vice president Li Peiqing said, by the patent fee, the DVD player and all other video products have been discontinued, started the production and export of MP3 player, digital TV set-top boxes, etc.. New group has also stopped all traditional household DVD exports, the main mobile DVD, EVD and LCD TVs and other products. Large domestic dish machine export Guangdong DESAY is also considering the transformation of related industries. The remaining domestic dish machine companies, about 80% of the enterprises are relying on OEM processing survival. At present, the days have been very difficult.

Due to the past two years, the domestic DVD industry profits almost freezing point". Now DVD industry profits of only 10% in 2002, some traditional DVD, each export gross profit of only $1-2. Therefore, the industry pointed out that the next two years is a critical period for the transformation of domestic DVD companies.

Because of the industry growth environment is not optimistic, to find a new industrial growth point, the reporter was informed that this year, the domestic export enterprises have launched DVD recordable DVD and other high-end products, increase the added value of export products, for a certain profit space.

Due to the growth of the DVD industry is not large, the impact of the decline in profits also affected the stability of the DVD chip market. It is understood that the DVD chip in 2004 suffered a huge inventory pressure, this year's shipments are not optimistic. Due to the industrial environment is not very optimistic, experienced people believe that, by the impact of the external environment, this year's DVD industry growth opportunities have been quite slim. IDC's report said China's DVD manufacturers subject to patent licensing, the impact of excess inventory, will drag on the development of the DVD chip market for a long time. The industry proposal, on the DVD chip industry growth opportunities, the industry should also make relevant countermeasures.

In fact, the DVD industry is already imperative. On the one hand, because do not have core technology, many domestic DVD manufacturers must pay royalties to PHILPS, which makes domestic manufacturers lost most of the profits; on the other hand, the fierce market competition and promote DVD dish machine prices continue to decline, manufacturers tend to be "very meager profits or even losing money earned shouted, in a vicious the price war there are no winners -- even PHILPS, LG such a core technology giant is also very difficult to find much from the DVD machine" surplus value ", let alone to deal with both the price war and face the patent fee for domestic manufacturers.

For any side of the manufacturers, the current DVD market strategy is necessary to transfer. How to change is conducive to the development of the DVD industry, which has been a matter of concern to everyone in the industry. Looking at the current DVD industry and the DVD chip industry status quo, end is whole industry had to face the fact. Due to the industry downturn, according to insiders, 2003 DVD average price is 780 yuan, by the end of 2004, the price dropped to 650 yuan, the current DVD industry profit margins fell across the board is at the stage. Similarly, the DVD chip industry due to sluggish demand terminal has not survived, the patent and inventory control, DVD global chip market in 2005 will be the continued downturn.

Chinese DVD manufacturing companies can not escape this embarrassing fate, then the next step is to stick to the development of DVD's position or seize the rest of the industry growth opportunities?

For this confusion, MII in February this year officially called EVD "high-density laser disc system technical specifications" promulgated the recommended standards of China's electronics industry, has brought down the EVD industry