Lite-On IT expects 10% growth in slim optical drive shipments in 2011 - ResearchInChina

Date:2011-04-28liaoyan  Text Size:

Lite-On IT expects its slim-type optical drive shipments to have 10% growth in 2011 with its new business model of slowly expanding its share, according to the company.

Since Korea-based Hitachi-LG Data Storage (HLDS), Toshiba-Samsung Storage Technology (TSST) and Taiwan-based Lite-On IT together already hold more than 80% of the total optical drive market, causing newcomers to have a hard time joining the market, Lite-On IT has adopted the new business model hoping to achieve shipment growth in the industry.

For half-height-type (H/H-type) optical drives, HLDS and Lite-On IT are currently the top-two makers and the ranking has not changed for a while since the global desktop market is hardly seeing any strong growth.

Although market watchers believe slim-type optical drives, which are facing traditional notebook's shipments being impacted by tablet PCs, are unlikely to see on-year shipment growth of 20% every year like in the past, the makers believe the notebook market still has potential to grow in 2011.

Lite-On IT announced revenues of NT$13.96 billion (US$474.69 million) for the first quarter of 2011. As for the second quarter, since the upstream raw material supply status is still uncertain, despite downstream vendors are aggressive storing optical drive inventory, the optical drive makers are currently putting their focus on supplying existing orders and will not work on expanding their market share, therefore their shipments in the quarter are likely to remain flat on quarter or grow slightly.

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