Vendors to replace H/H ODDs with slim-type models for desktops in 3Q13, say Taiwan makers

Ocean Chen, Taipei; Adam Hwang, DIGITIMES [Monday 26 November 2012]

Vendors will replace half-height (H/H) optical disc drivers (ODDs) used in desktop PCs with slim-type ODDs used in notebooks beginning third-quarter 2013 due to cost consideration, according to sources from Taiwan's supply chain.

Costs of H/H ODDs are approximately the same as those of slim-type models currently, but the former are expected to increase because their larger dimensions need more metal materials and higher assembly and transportation costs, the sources said.

With more storage alternatives available, the proportion of notebooks equipped with slim-type ODDs has declined from 90-95% in 2010-2011 to 70-80% in 2012 and is expected to further drop to 50-60% in 2013-2014, the sources indicated. The proportion for desktops with ODDs will not slip but global demand for desktops is on the decline, the sources noted.

Beginning from third-quarter 2013, slim-type 12.7mm-thick ODDs currently used in conventional notebooks will be adopted for desktops while 9.5mm models will be used in slim notebooks and ultra-like models, and 9mm models in ultrabooks, the sources pointed out. Costs of 9mm slim-type ODDs are about 10% higher than those of 9.5mm models, the sources noted.

Panasonic and Hitachi-LG Data Storage have begun production of 9mm slim-type ODDs for Taiwan-based ultrabook vendors, with volume shipments to start in first-half 2013, the sources indicated.

ODDs that are 8.5mm and 7mm thick have been developed but PC vendors are unwilling to adopt them for the time being because production costs are 30-40% and over 100%, respectively, higher than those of 9mm models, the sources added.