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About LinkBacksLite-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.
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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.
More in this HEXUS.lifestyle.headline.
Seems sensible to me. A lot of the time they are competing with their own products with someone elses badge on the front *and* have to deal with retail issues. Better to get someone else to worry about all that hastle.
Ah, but the reason why companies who make product on an OEM basis also want to sell under their own brand is that they make more money on the sale of own-brand stuff.
Trouble is, as Lite-On may well have now realised, there's a lot of costly asides needed if you are going to have stuff sold retail - and returns is just one of them.
I don't know quite what sorts of deal are agreed between Lite-On and the companies such as HP who buy stuff to sell under their own brand, but I suspect that Lite-On itself doesn't get involved with the mucky stuff like returns.
And an outfit like Wal-Mart must be an absolute nightmare to sell to because they not only force you to sell CHEAP, but almost certainly force you to pick up the cost of returns; even of stuff that isn't faulty but has been returned cos the customer had a change of mind.
Last edited by PD HEXUS; 27-10-2006 at 02:54 PM.
A company can be made or broken by what it sells under it's own name... Remember what happened when Gerald Ratner said his company sold 'rubbish'?
Matt.
The world is a great big Onion - try to cut it, and you are likely to cry...
Lite-On were originally OEM only.
I wonder if we'll see some "bargains" as stores sell off the remaining stock?
There's a good chance, but as their stuff is held in fairly high regard there is just as much chance that they will stay at full retail.
The world is a great big Onion - try to cut it, and you are likely to cry...
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]
That's a shame, I just bought the DVD recorder from them, the AX101 I think it was, and it's excellent! Divx and everything - and very small!
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