Sony - supplier of Power Mac G5 DVD-R units and iMac DVD writers - is to phase-out production of DVD burners in favour of OEM production in Taiwan, according to Taiwan-based optical-disc drive makers.

A DigiTimes report suggests that the decision is on account of price pressure. Taiwanese companies entered the DVD market in the second quarter and the resulting price competition has caused a drop in prices.

Sony will cease production of 8x DVD and higher speed models. Taiwan sources say Sony is likely to place the OEM orders with Taiwanese manufacturer Lite-On IT.