PC vendors seek reduction in Blu-ray drive ODM/OEM quotes

Written by James Delahunty @ 16 Aug 2008 2:18 User comments (8)

PC manufacturers including Acer, Dell and Hewlett-Packard are shopping around for better deals on Blu-ray Disc (BD) Combo and BD-ROM drives. The leading ODM/OEM makers are defiant however, claiming that they are unable to keep component costs down, and so are refusing to lower the quotes for the PC vendors. Among the BD drive manufacturers are Hitachi-LG Data Storage (HLDS), Toshiba-Samsung Storage Technology (TSST) and Pioneer.

Pioneer focuses mostly on BD Combo drives while another manufacturer, Lite-ON IT, focuses on BD-ROM drives, while HLDS and TSST produce both. As it stands, ODM/OEM quotes for Combo drives lingers around $120 to $130 and the PC vendors seek a cut of $20 to $30. BD-ROM drives have ODM/OEM quotes around $95 to $100, and the PC vendors want a $5 - $10 decrease.

DigiTimes cites a source for the figures and notes that none of the OEM manufacturers are willing to sacrifice profitability for orders. The source indicated that this problem will likely result in one a small growth the volume of BD drives shipped to PC vendors in the third quarter of 2008 from the preceding quarter.

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8 user comments

116.8.2008 05:22

susieqbbb

Inactive

Yea i would tell them to lower price tags as well 200.00 for a bluray drive is totally stupid when the drive costs only half that amount to build the drive.

Like i have said be fore make it cheaper or you will watch bluray fail

216.8.2008 13:05

ZippyDSM

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AfterDawn Addict

like with how sony put HDVD into the grave the BR industry has to take losses up front to gain profit in the mid to long term, otherwise people will ignore BR.

316.8.2008 14:45

mspurloc

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Member

Originally posted by susieqbbb:
Yea i would tell them to lower price tags as well 200.00 for a bluray drive is totally stupid when the drive costs only half that amount to build the drive.

Like i have said be fore make it cheaper or you will watch bluray fail

And that's being generous, actually. The production cost of a bare-bones internal BRD is just under $30. The rest is markup.

416.8.2008 15:21

ripxrush

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Junior Member

OK, THERE IS YOUR $30 FOR THE PARTS what ABOUT s&< FUEL CHARGES, Employee payment, medical, etc & the initial cost of advo * development that must be built into this product! i am not saying there is not a mark up but to sound corny the drive is more than the sum of its parts! its like saying a Ferrari is just aluminum & carbon fiber! it is totally forgetting about production costs!

516.8.2008 16:07

fergus100

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Newbie

blue ray costs will come down soon its been out for three years now so production costs will come down blue ray wont fail because of the amount of playstation threes that are in the marketplace and in homes

616.8.2008 16:35

varnull

Inactive

I don't see there being any more cost than making a dvd burner.. the rest is pure licensing costs and markup.

bla blah.. blu-ray will conquer all.. I remember that so well.. wasn't the UMD supposed to wipe out dvd?.. the same crap they spun with the minidisk which was going to exterminate the CD.. yeah yeah.. heard all the BS before. They stayed one manufacturer formats after an initial rush.. Somewhere in the shed I have an onkyo standalone umd player.

716.8.2008 18:55

ZippyDSM

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AfterDawn Addict

Originally posted by varnull:
I don't see there being any more cost than making a dvd burner.. the rest is pure licensing costs and markup.

bla blah.. blu-ray will conquer all.. I remember that so well.. wasn't the UMD supposed to wipe out dvd?.. the same crap they spun with the minidisk which was going to exterminate the CD.. yeah yeah.. heard all the BS before. They stayed one manufacturer formats after an initial rush.. Somewhere in the shed I have an onkyo standalone umd player.

Well UDM died because they didn't price it right nor did they supply a free simplified version with DVD movies, you just do not spam out bloated hardware and film and expect it to take off, sony fought hard to get BR to the way point unlike UDM and now sony and the BR barons are not doing much if anything to make BR the repalcement for DVD.

817.8.2008 06:37

defgod

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Junior Member

Quote:
Originally posted by varnull:
I don't see there being any more cost than making a dvd burner.. the rest is pure licensing costs and markup.

bla blah.. blu-ray will conquer all.. I remember that so well.. wasn't the UMD supposed to wipe out dvd?.. the same crap they spun with the minidisk which was going to exterminate the CD.. yeah yeah.. heard all the BS before. They stayed one manufacturer formats after an initial rush.. Somewhere in the shed I have an onkyo standalone umd player.

Well UDM died because they didn't price it right nor did they supply a free simplified version with DVD movies, you just do not spam out bloated hardware and film and expect it to take off, sony fought hard to get BR to the way point unlike UDM and now sony and the BR barons are not doing much if anything to make BR the repalcement for DVD.

Well of course they're not. They're just another money hungry corporation that is bowing to their GOD. The all mighty Dollar, Euro, Peso, Yen, Ruble, or any other world currency.

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PC vendors seek reduction in Blu-ray drive ODM/OEM quotes

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