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Citing supply shortages, rising costs from overseas disc makers and the stringent enforcement of patent royalties, Memorex said it is forced to increase CD-R and CD-RW media prices 10 percent to 15 percent, beginning this January.
Memorex emphasized that manufacturing costs have increased 35 percent this year, due to patent royalty fees, rising production costs for petroleum-based plastics used to make optical media and higher transportation costs to deliver product throughout the distribution system.
Until this planned increase, Memorex said it has been absorbing increases, rather than passing these on to customers.
The company blames a manufacturing focus on DVDs and a lack of investment in new CD-R and CD-RW production facilities for much of the shortage problem.
"Production capacities can no longer meet consumer demand for CD media, and this trend is expected to continue into next year," said Michael Golacinski, president/CEO. He said Memorex has no alternative but to pass the increase in cost to its retailers.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.