DailyTech - Update: Lite-On to Exit Consumer Device Market

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Hardware Update: Lite-On to Exit Consumer Device Market
Anh Tuan Huynh (Blog) - October 26, 2006 10:02 PM

31 comment(s) - last by SuperSix.. on Oct 29 at 10:15 AM

No more retail box Lite-On products

DigiTimes reports Lite-On is pulling out of the consumer market sectors. This includes all retail products sold under the Lite-On brand including optical disk drives and DVD recorders. This comes a few months after BenQ announced Lite-On would take over its optical storage product manufacturing.

Lite-On is stopping production of consumer retail products due to very low profits in Q3’2006. The outlook doesn’t look too good for this quarter either. Lite-On claims:

This quarter, Lite-On IT will continue amortizing losses from consumer ODDs, including those from returns of DVD recorders shipped through Wal-Mart, so the profitability will not significantly improve from last quarter, Liao noted.

Nevertheless, Lite-On will continue to produce products for OEM and ODM customers and is nearly finished moving BenQ optical disc drive production to its Guangzhou production facilities.

Update 10/30/2006: Lite-On has released a statement claiming that its decision to pull out of the consumer device market is only limitted to set-top devices.

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BenQ

By HaZaRd2K6 on 10/26/2006 11:51:20 PM , Rating: 2

So is BenQ still going to have drives produced under their own name or what? Because from the wording of the article, it seems as though Lite-ON will take over BenQ's operations and shut them down.

RE: BenQ

By Clauzii on 10/27/2006 12:04:12 AM , Rating: 3

Nah - it says that Lite-On will make the drive mechanism, for a case and accessories that BenQ puts a name on :)

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RE: BenQ

By Doormat on 10/27/2006 12:44:53 AM , Rating: 2

Yea, Lite-On is still going to make parts, but they're done in terms of actually putting their name on it and selling it to people. I dont know why they singled out WM - I've had several liteon drives and they all worked fine, perhaps its user error (wouldnt surprise me given the people I see shopping at walmart, its why I shop at Target).

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RE: BenQ

By FITCamaro on 10/27/2006 7:31:18 AM , Rating: 3

It probably also has to do with the fact that people who shop at Walmart typically can't afford the stuff they buy and end up returning it. And because its Walmart, like everything else there they contract with name brand companies to produce cheaper, crappier versions of the same product found elsewhere. Walmart is a cancer on the world and needs to die.

I love LiteOn products though. I have two of their DVD burners in my PC and have never had a problem with any of their drives.

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RE: BenQ

By PitViper007 on 10/27/2006 8:23:22 AM , Rating: 3

Agreed. I've been using LiteOn products for years, ranging from CD-ROM's to DVD burners. They've all been good devices. I'm sorry to see that they won't be producing under their own name any more but am happy that they will continue OEM production.

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RE: BenQ

By marvdmartian on 10/27/2006 9:18:37 AM , Rating: 2

Well, figure too, that Walmart (at least my local one) had those retail LiteOn dvd burners & players horribly overpriced, even for the retail market (IMHO).

When I'd walk into Walmart, and see a LiteOn dvd burner for $80, that I knew I could buy for $45 (late last year, early this year) through NewEgg, why wouldn't I pass it by? If people are bringing them back, it's likely either that their computer geek friend laughed at them for paying so much, or they broke their original one, bought another one, then put the broken one in the new package, and returned it for refund (gee, wouldn't that be a huge surprise??).

Thank goodness they'll still be selling OEM. Newegg FTW, again! :)

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Thanks a bunch enthusiast crowd!!!!!!!

By SunAngel on 10/27/06, Rating: 0

RE: Thanks a bunch enthusiast crowd!!!!!!!

By Misty Dingos on 10/27/2006 7:37:16 AM , Rating: 5

HEY HEY HEY! Step back from the keyboard. Take a break from the potent caffeine drinks. You need a break there SunAngel. Go for a walk in the park or go hug a teddy bear. And do not drive angry.
The enthusiast crowd is very small. They did not drive anyone into changing their marketing plan. It is simple DVD, CD-ROMs are very low profit items. Liteon made the best and will keep making the best of those products but there simply is not enough profit in that market to support their company. So ease up on folks that like to push their equipment to the edge of reason and sometimes farther. You can ease up on the guys and gals copying movies too. The only people they are hurting are the movie studios. But they are going to make some doctors rich by watching too much TV and having heart attacks at 30.

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RE: Thanks a bunch enthusiast crowd!!!!!!!

By zombiexl on 10/27/2006 8:42:01 AM , Rating: 2

I highly doubt that much of the enthusiast crowd shops at walmart. Most people with half a brain realize that the few cents you save isn't worth the extra time it takes to get out of the store.

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RE: Thanks a bunch enthusiast crowd!!!!!!!

By FITCamaro on 10/27/2006 2:06:11 PM , Rating: 2

What you don't shop the high quality computer parts they sell at Walmart? I mean..they have......EMACHINES!!! Oh yeah. Can't get any better than that.

The last thing I bought at Walmart was like Kleenex. Cause even Walmart can't screw that up.

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sad

By sprockkets on 10/26/2006 11:33:05 PM , Rating: 1

Their dvd recorder is nice. Shame I did a firmware update on it; it fixed a bug in copy protection. I wonder if I can find 3rd party firmware for it...

RE: sad

By Clauzii on 10/27/2006 12:05:44 AM , Rating: 2

Isn't it possible to rewrite and older version firmware?

Or is this copything a seperate chip that only do "forward" updates?

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RE: sad

By Christopher1 on 10/27/2006 1:13:43 AM , Rating: 1

Usually, the internal software of the driver will only let you do firmware UPGRADES, not downgrades. I've read on the subject, and that is the gist that I get.

I've never run into problems with copying something 'copy protected' anyway. Just use RecordNow! and it copies fine, no matter if the image file or disk I am using is supposed to have copy protection on it.

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RE: sad

By oab on 10/27/2006 9:50:43 AM , Rating: 2

That is incorrect. If you get a program called "Flash Fix" it will let you flash any firmware to your drive, whether it was designed for it or not. It just removes the drive check from the firmware update, it then lets you go back, (or flash your other drive in your system what that firmware and then bricking it).

I found it on CDFreaks.

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RE: sad

By TheGee on 10/29/2006 7:29:04 AM , Rating: 2

I backed from US0S to US0Q using LtnFW.exe after US0S didn't like Nero. Now it's back to 0Q it works fine. I've only ever had LG and LiteOn cd and dvd drives ever since paying £128 for a 2x CDrom! They have been trouble free. But as always you need to take care when flashing firmware!
It's a shame the name will go because out of all the current domestic DVD recorders and hard drive DVD recorders liteOn are definitely the best value. But I dare say we will find out which makes use liteON and buy those! They do supply a lot of well known brands which includes SONY for their sins!

At 1.5 x the cost I might add!

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Looks like Wally World....

By sxr7171 on 10/26/2006 11:28:37 PM , Rating: 2

killed 'em off.

RE: Looks like Wally World....

By Staples on 10/27/2006 3:26:44 AM , Rating: 3

This is what can happen when you have one huge customer.

Walmart is well known for killing off manufacturers because when they are the customer of 80% of your product and they demand a cheaper price, what can you do? Just the fact that they mentioned Walmart makes me think this is just another casualty caused by them.

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RE: Looks like Wally World....

By sxr7171 on 10/27/2006 1:45:33 PM , Rating: 2

Yes exactly. In economics it is called a monopsony. It is just as harmful as a monopoly. This isn't really a monopsony as that would require that all optical drives have only one purchaser, however in the case of Lite-On that is what happened.

As a side note, my post got rated down to -1 in less than an hour and now I'm back up to 1, and you are at 3 for expressing the same idea. There must have been some real Wally diehards here yesterday.

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OEM

By Slaimus on 10/27/2006 12:44:16 AM , Rating: 2

Sony is the major that uses LiteOn OEM, so they will probably just sell more under the Sony brand.

RE: OEM

By Slaimus on 10/27/2006 12:44:48 AM , Rating: 1

major [retail brand]

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RE: OEM

By kamel5547 on 10/27/2006 12:53:35 AM , Rating: 2

HP also uses them...

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Apply directly to the Light.

By Possessed Freak on 10/27/2006 8:13:05 AM , Rating: 3

Lite-on, apply directly to the headlight.
Lite-on, apply directly to the headlight.
Lite-on, apply directly to the headlight.
Lite-on is available without perscription at retailers nation-wide.

RE: Apply directly to the Light.

By gplracer on 10/27/2006 9:01:01 AM , Rating: 2

Why would someone buy a drive from walmart? The price is much higher than online places like newegg.

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That sucks

By Dustin25 on 10/27/2006 1:29:23 AM , Rating: 2

I really like my lite on dvd drives. Much more than my Plextors. R.I.P Lite On, R.I.P.

RE: That sucks

By Lazarus Dark on 10/27/2006 12:15:45 PM , Rating: 2

this comes as a surprise to me, it seems all I ever hear is "I loves me liteon". I hear it so much I was nearly convinced to get one. but hey there still making benq's stuff and I really like my lightscribe benq.

btw whats all this walmart stuff? who buys optical drives there? I didn't even know they had computer components.

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By gramboh on 10/27/2006 2:00:47 AM , Rating: 2

Hmm I better buy one more 16x DVDRW, I love LiteOn.

I hate AOpen

By encryptkeeper on 10/27/2006 9:24:32 AM , Rating: 2

Why Lite On? Why? Your products are so much better than AOpen!

LOL @ Lite-On

By jonmcc33 on 10/27/2006 6:54:25 PM , Rating: 2

LOL! I've had many Lite-Ons die on me in the past few years. It doesn't matter how many DVDs I burn, a quality product will not fail. I wised up and got a Plextor, which has lasted for more than a year without any problems.

Be smart. Get a Plextor.

NO!

By Soviet Robot on 10/28/2006 1:50:00 AM , Rating: 2

NOOOOOOOOOOOOOOOOO! I love Lite-On's retail products :(

Sony OEM drives = LiteOn

By SuperSix on 10/29/2006 10:15:46 AM , Rating: 2

If you still want Lite-on drives, All Sony OEM drives (Bare/bulk) are made by Lite-on. Sony's RETAIL drives are made by SOny though..

Walmart customers PC challenged !

By cornfedone on 10/27/06, Rating: -1

By cornfedone on 10/27/2006 3:27:52 AM , Rating: -1

Since Lite-On drives have always been good quality, I'd offer that the high rate of returns at Walmart is an indication that Walmart customers may be PC challenged. I think it's reasonable to conclude that folks who shop for the absolute lowest price regardless of product quality, may not exactly be PC experts and thus are unable to install a typical optical drive without problems, thus the high return rate at Walmart.

I can understand Lite-On's desire to not have to deal with retail consumers any longer. If you're an OEM supplier and you don't have the proper retail customer support resources in place, you're gonna have a lot of head aches. The OEM mobo and video companies have all suffered from a lack of proper end-user support since electing to sell direct to reap higher profit margins. (See Asus, DFI, Sapphire, Gigabyte, ATI, Nvidia, et al).

When you can sell a $20 mobo for $70 to the retail segment (like e-tailers) or for $30 to an ODM (like Dull, HP, etc.), it's easy to see why OEM's go for the gold in the retail segment despite failing to provide proper customer support for their products. It's all about financial greed.

SOS, DD.