Despite Lite-On's recent introduction of new HDD/DVD recorders featuring HDMI output, Lite-On has now decided that it is going to close out its own-brand consumer optical disc drive business, which mainly covers Lite-On branded set-top DVD recorders. This comes after the company reported very small net earnings per share during the 3rd quarter. However, they will continue its OEM/ODM production of these products.
According to Lite-On, its average gross margin dropped from 16.7% in the first half of the 2006 to just 13.2% during the last quarter as a result of acquiring BenQ's ODD business unit, research & development delays of various optical drives, such as Blu-ray and the significant losses involved in returned own-brand DVD recorders that were sold through the Wal-Mart chain, Lite-On's largest client of consumer DVD recorders. During this last quarter Lite-On will gradually liquidate its stock of consumer optical disc drives as well as the DVD recorder returns that were shipped through Wal-Mart. Thanks to our system administrator Liggy for submitting the following news:
It will be a real pity to see the end of Lite-On DVD recorders, especially with how widespread and popular these have been. But then again, as they will continue OEM/ODM production of its current consumer products, this will mean that its DVD recorders will still be available, but only rebadged under other brand names.
Liggy would also like to point out that we have a forum thread discussion about this, which can be accessed here.
Source: DigiTimes Systems
