Lite-On to kill its consumer optical drive brand


— 11:58 AM on October 26, 2006

Less than five months after taking over BenQ's optical disc drive division, Lite-On has announced that it plans to stop producing consumer DVD and CD drives under its own name. The decision was prompted by poor third-quarter financial results and a shrinking gross margin. According to Lite-On CEO Danny Liao, the poor results were caused by ongoing integration with BenQ's optical unit, losses from returns of DVD recorders sold through Wal-Mart, and delays in research and development work on Blu-ray drives, slim optical drives, and optical drives for Xbox consoles.

Despite ditching the consumer market, Lite-On plans to continue producing drives for other companies as an original design/equipment manufacturer. The company also intends to have finished moving optical drive production from BenQ's factories to its own by December.

 
   
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