DVD Still A Luxury PC Item
A spot-check of basic system configurations at online computer retailers shows that DVD is still considered a luxury item, even in some PC systems selling for well over $1,500. When DVD is available as an option, it ranges in price from the $59 upgrade offered by Compaq to the $188 charged by Internet-only competitor iDOT to $400 charged by Apple. Those build-to-order systems have made it harder than ever for DVD drives to get a foothold in the PC market, says analyst Ted Pine of Norwich, VT-based research firm InfoTech. In the old days, drivemakers pursued ""design wins"" with OEMs, which meant the computer maker committed to including that drive in all PCs of a given model. But in the age of buyer-customized systems, OEMs retain more flexibility in mixing and matching components for their customers. Market Estimates Revised DownwardÖAgain In a market, where downward price pressure is so great that some retailers are offering ""free"" computers (after a rebate contingent on a four-year Internet service contract), it takes more than DVD movies to convince consumers to shell out an extra $60-$80 for their system. The end result is that DVD-ROM is taking hold, but more slowly than anyone had predicted. For example, a year ago InfoTech estimated sales of 6.5 million DVD-ROM drives in 1998; Pine says the real number was closer to 4 million. And this year? ""DVD is not being found where the action is, and thatís under $1,000ÖIíd be satisfied to see 15 million sold [in 1999],"" Pine says. Worldwide DVD-ROM Drive Sales (millions) Year ñ 1997 Unit Sales ñ 0.3 Installed Base ñ 0.3 Year ñ 1998 Unit Sales ñ 4.0 Installed Base ñ 4.3 Year ñ 1999 Unit Sales ñ 15.0 Installed Base ñ 19.3 Even though those numbers are low compared to early estimates (last year, InfoTech projected that 24.2 million drives would be sold in 1999), they still mean the worldwide installed base will be nearly 20 million moving into the year 2000. Combined with the introduction of DVD-based game consoles from Sony and Nintendo next year, those numbers should finally make software developers take notice. For more information, contact InfoTech at 802 649 8700. Source: DVD Report