The HEXUS news
Lite-On is to stop selling set-top DVD recorders under its own brand worldwide, though sales of own-brand PC optical drives will continue unchanged.
The decision - by Taiwan's biggest maker of optical disc drives and the world No.2 - is seemingly because of various profit hits it's suffered, notably from the excessive cost of returns of set-top units sold through Wal-Mart in the USA.
Other factors are thought to be the expense and difficulty of integrating BenQ's CD and DVD drive business acquired in April (see this HEXUS.lifestyle.headline) and unexpected costs and delays involved with Blu-ray Disc drives, slim drives for portable PCs and drives for Xbox 360.
Lite-On was unable to confirm the reasons for the move but did admit that it will indeed phase out sale worldwide of own-brand set-top DVD recorder - with and without hard disk.
Marketing Supervisor Jelmer Veldman, though, did make it clear that own-brand PC optical drives are unaffected and that the company will continue to sell set-top DVD recorders in the UK - its strongest European market - through and beyond Christmas.
Stopping own-brand sales of DVD recorders might look like a big deal but is more a blow to the company's ego than anything else. Own-brand models only account for 25 per cent of Lite-On's set-top recorder sales and around five per cent of its total revenue from opticals - most of its production is sold under other company's brands.
Update October 26, 13.30
We've just received an
email from Jelmer Veldman in which he sort
of backtracks on his earlier confirmation that Lite-On is to
stop selling own-brand set-top DVD recorders. In that
email, Jelmer says,
After a quick check with
Taiwan, I can tell you that at this moment we will still be carrying
HDD /
DVD recorders in Europe, but we are shifting focus towards OEM production. It does not mean we will
immediately stop business in Europe.
Especially in UK we are doing quite well. We will still serve our existing customer base with
Lite-On branded products. There has [been] no definite stop been announced.
DVD recorders in Europe, but we are shifting focus towards OEM production. It does not mean we will
immediately stop business in Europe.
Especially in UK we are doing quite well. We will still serve our existing customer base with
Lite-On branded products. There has [been] no definite stop been announced.
Update October 27 14:18
Lite-On
today issued a press release (see page two) intended
(we think) to correct the impression given by a recent
DigiTimes story
that it is to completely stop selling own-brand optical disc players.
That piece contrasts with the article you are reading now
which, from the outset, talked only about Lite-On
own-brand
set-top DVD recorders being phased out because that was what we were
told on the phone by Lite-On's Jelmer Veldman. Oh and life
will be
a little easier for you as you read on if you realise that the
term 'ODD' means optical disc drive.
The DigiTimes story is headed, With tiny profits in 3Q, Lite-On IT goes to close own-brand consumer ODD business.
Rather unhelpful (for Lite-On's apparent cause) the responding press release is headed, Lite-On IT will continue ODD business (making no mention of own-branding) and further clouds the issue with these ill-judged lines,
The DigiTimes story is headed, With tiny profits in 3Q, Lite-On IT goes to close own-brand consumer ODD business.
Rather unhelpful (for Lite-On's apparent cause) the responding press release is headed, Lite-On IT will continue ODD business (making no mention of own-branding) and further clouds the issue with these ill-judged lines,
Lite-On IT will definitely
not stop ODD products, DVD-
and CD burners. The news release on DigiTimes will only affect the
company's standalone DVD recorders product line.
Why do we say "ill-judged"? Well, you'll notice that own-branding also goes unmentioned in both the above sentences. Consequently, you could be led to believe that Lite-On is actually going to stop production of ALL set-top DVD recorders - which we don't think it's going to do.
Similarly, you could be led to believe that it confirms that Lite-On is moving out of own-brand PC CD and DVD drives and burners - and, frankly, right now, we don't know whether it is or it isn't.
Bob Crabtree adds
- apologies
to site visitors who may have noticed that the above update has itself
been updated a number of times over the last 35 minutes. We had assumed
from the email that accompanied Lite-On's release that the release
itself clarified matters. So we did a quick update and added also added
the release on a new second page. Only then, however, did we
thoroughly read the release and realise that it doesn't really clarify
anything. D'oh!
We will put up a further update if we do receive a more clear explanation from Lite-On about what it is actually planning to do - get out of own-branding or stay in and get out of making set-top DVD recorders or stay in.
Update October 30 23:05
[Lite-On sent further
clarification by email in the afternoon of October 27, which I failed
to notice until recently - apologies to all for the delay. Bob C]
Q. Is Lite-On intending to
get out of all own-branding or stay in?
A. Only the own-branding of standalone DVD recorders will be stopped.
[Er, just in case that's not clear – the company means set-top product that connects to a TV set, NOT USB externals! Bob C]
Q. Is Lite-On intending to get out of making all set-top DVD recorders or staying in?
A. Lite-On will continue producing standalone DVD recorders for OEM/ODM customers and Private Labels.
Q. If it is staying in, is Lite-On intending to get stop making set-top DVD recorders for sale under its own brand?
A. The new models of DVD recorders with HDMI connection recently announced by our Taiwanese Headquarters shall be the last batch to be sold under Lite-On brand and Lite-On will take responsibility of the after sales service and RMA liability with the same care as always.
Future production will focus on OEM/ODM business and Private Labels with no intention to sell under Lite-On's own brand. The production of ODD products is not affected at all.
[When Lite-On talks about "ODD" products, it means optical drives that are connected to personal computers. Bob C]
A. Only the own-branding of standalone DVD recorders will be stopped.
[Er, just in case that's not clear – the company means set-top product that connects to a TV set, NOT USB externals! Bob C]
Q. Is Lite-On intending to get out of making all set-top DVD recorders or staying in?
A. Lite-On will continue producing standalone DVD recorders for OEM/ODM customers and Private Labels.
Q. If it is staying in, is Lite-On intending to get stop making set-top DVD recorders for sale under its own brand?
A. The new models of DVD recorders with HDMI connection recently announced by our Taiwanese Headquarters shall be the last batch to be sold under Lite-On brand and Lite-On will take responsibility of the after sales service and RMA liability with the same care as always.
Future production will focus on OEM/ODM business and Private Labels with no intention to sell under Lite-On's own brand. The production of ODD products is not affected at all.
[When Lite-On talks about "ODD" products, it means optical drives that are connected to personal computers. Bob C]
Check out the press release on page two and let us know in this thread in the HEXUS.lifestyle.news forum if you think - like us - that all Lite-On had done today is thoroughly muddy the waters.
HEXUS.links
HEXUS.community :: discussion thread about this article
HEXUS.lifestyle.headlines :: Lite-On promises UK Blu-ray burner in August
CTS 2006 :: Interview with Lite-On's Jelmer Veldman
CTS 2006 :: All the HEXUS coverage
External.links
Lite-On IT - Home pageLightScribe - Home page
DigiTimes - With tiny profits in 3Q, Lite-On IT goes to close own-brand consumer ODD business
