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Tue 29 Aug 2000 04:00 AM

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Philips acknowledge CD based RCR surge

A boom in CD radio Cassette recorders has prompted Philips to suggest that the CD based systems will soon drive standard Radio cassette recorders out of the market.

The traditional cassette could be drawing close to the end of its Middle Eastern life cycle according to Oliver Delahaye, general manager Philips Consumer Electronics Middle East and Africa.

Delahaye has noticed a major shift in consumer demand away from basic radio cassette recorders (RCRs) to CD based RCRs. According to company officials, research shows that 70% of RCRs sold in the region are CD based and they predict that production of solely cassette based systems could cease within five years.

“The audio markets in the Gulf region are a rapidly evolving sector in consumer electronics,” explained Delahaye.

Price Reduction

“The movement towards CD based systems has primarily been triggered by a reduction in prices, especially in comparison to purely cassette based systems and the increased preference for better quality digital music.”

According to Delahaye, three years ago a standard RCR cost AED100-400 while CD systems started at AED400. But now CD systems start at just AED200 some the cost advantages of a standard system have been practically nullified.

“It doesn’t take a genius to see where the buyer sees his advantage,” said Delahaye.

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