In the second quarter of 2001, renewed capacity expansion kept supply above demand, and CD-R discs fell to US$0.14 a unit. Ritek did go back up to US$0.22-0.24, but the recent increase in demand has given it an opportunity to claim a larger market share by offering lower prices than European competitors. Its average quoted price for November is between US$0.20 and US$0.22. CMC is now offering a CD-R disc for US$0.24-0.25, down from US$0.28. CMC said the company dropped the price as a way to clear out 24x speed CD-R discs and make room for 32x speed discs, which will be produced in greater volume starting in 2002. According to CMC, the price drop will not affect its gross margin, which should remain at 30%.
News source: CDFreaks - CD-R disc makers cut prices 10-15%
