A newspaper price war in Hong Kong is sending newspaper shares through the floor and slashing news stand prices by as much as 80 per cent.
The price war, started by established Chinese language title the Oriental Daily News, has apparently been triggered by the success of a new rival, Apple Daily.
The Oriental Daily News slashed its cover price from the standard five Hong Kong dollars (65 cents) to four Hong Kong dollars (50 cents) last week.
Other titles followed suit - some cutting their price to as low as one Hong Kong dollar (13 cents).
The price war has already led to a drastic decline in sales for some newspapers and a surge in sales for others.
Although they lowered their prices I still read the same paper. I wouldn't buy others even if they were cheaper but my friends, who don't normally buy newspapers, have begun to. They say it's because it's so cheap. Some even buy two of the HK$1 newspapers for one household.
SUPER CAPTION: newspaper reader
Since its debut six months ago, Apple Daily's readership has risen to phenomenal levels.
It has become the top selling newspaper in Hong Kong after cutting its price from five Hong Kong dollars (65 cents) to four Hong Kong dollars (50 cents).
No one knows how long the price war will last, but Apple Daily owner Jimmy Lai has already told consumers they can expect the paper to stay at four Hong Kong dollars (50 cents) until 1997.
At this rate, the company will be losing out on almost nine (m) million Hong Kong dollars (almost 1.2 million dollars) of revenue every year.
Mr Lai says he is not worried about how this price war will affect his newspaper.
He likens the price war to a similar one in Britain.
After two years, after everybody lost a lot of money, there's no additional readers. At the end of the day, you know that those who end up winners are those who have good quality and not because they have the cheaper prices.
SUPER CAPTION; Jimmy Lai, owner of Apple Daily newspaper
Mr Lai is confident his newspaper will come out on top, despite the price war.
But he believes smaller, less popular newspapers might not pull through.
One local newspaper, the Hong Kong Daily News, is getting positive feedback from readers and advertisers since it slashed its cover price from five Hong Kong dollars (65 cents) to just one Hong Kong dollar (13 cents).
We've had a very good response from the public. Now everyone has heard of the Hong Kong Daily News. Many people have called us to praise us for our paper and we have a lot more confidence. Within the last two years our advertising sales revenue has increased by 100 per cent.
SUPER CAPTION: Vincent Wong, director of sales and marketing, Hong Kong Daily News
Since the price war began last week, newspaper vendors have sold out the top selling titles by mid-morning.
They have begun to order twice the amount of stock, but that only lasts them until late afternoon.