Lite-On to kill its consumer optical drive brand
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.