Parallel imports bring down CDRW prices

Amidst reports of parallel imports and regular supplies through official

channels, the last few weeks have witnessed a 15 to 20 percent reduction in

prices of CDRWs. While vendors largely attribute price cuts to the increasing

preference of CDRWs over CDROM drives, market sources said that its primarily a

result of huge shipments of parallel imports arriving in the country.

Average CDRW prices which sometime ago were ranging between Rs 5,000 to 6,000

have now come down to around Rs 4,000 to 4,500 levels. A Samsung 24X CDRW, which

was selling at around Rs 5,000 a few weeks ago, is now available at Rs 4,400.

Surprisingly, there are dealers offering these CDRWs as low as Rs 3,850.

According to them, the company has drastically slashed prices due to the heavy

parallel imports in this segment.

Incidentally, BenQ and Sony have also reduced prices of their CDRWs.

Reasoning the price cuts, Pankaj Pamani, Manager (Marcom), Benq India said,

“We are simply reacting to the market sentiments and also to the fact that the

demand for CDRWs is picking up.”

BenQ CDRWs which were available at Rs 4,800 upwards are today available with

the channel at around Rs 3,900. Even a 24X Sony which was selling at around Rs

5,000 a month back can be bought today at around Rs 4,400. Similar is the case

with LG and Asus.

Said Amit Gupta, Product Manager (Sony), Rashi Peripherals, “We had to

reduce the prices as Sony CDRWs have witnessed a huge growth in demand. We

expect this trend to continue and the next few days will see a further decrease

in prices.”

Gupta feels that it won't be long before a CDRW becomes the default component

of a PC. Even speed-wise, the common sentiment is that 24X writers won't be in

much demand soon. Pankaj feels that by July end, one would mostly see a 32X

being asked for and that it would sell for Rs 4,000.

Vendors and resellers have slightly different opinions to offer about the

role that parallel imports play in price-cuts. Ashwin Kukreja of Real Time

Computers, said, “Though there is an increase in demand, the major reason

behind the price drop is the parallel imports which is happening for brands like

Samsung, Sony and BenQ.” Vendors, on the other hand, feel that it is the other

way round. But, both agree that there is no way to curb parallel imports. So

far, only Sony seems to have taken an action involving one of its Middle-East

distributors who was found to be indulging in parallel imports to India.

Resellers already feel that it is gradually affecting their business and

market share. “Margins in this segment, which used to be in the Rs 100 to 200

range have now got reduced to Rs 25 to 50 per unit,” said an unhappy Kukreja.

However, vendors feel that even the best of mechanisms can not put a complete

stop to parallel imports.

Goldie S


(CNS)