Lite-On to Exit Consumer Device Market, Read why this matters
Andrew
  Posted: Oct 27 2006, 06:01 AM


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Lite-On to Exit Consumer Device Market

Anyone who doesn't follow this will probably not care but should. Two things are happening here:

1. Walmart is forcing companies out of the retail market. Walmart claims that only companies that are efficient should be doing business with them. They even hyped moving to China to cut costs. The irony is that Lite-on is a big player in optical drives and does volume business with companies like Dell, they already manufacturer in China and probably use the cheapest labor available and even they cannot justify staying on the shelves at Walmart. What you are left with is low quality crap that can make a buck on a Walmart shelf.

2. Internet Competition is getting worse and worse. The better price search engines get the more companies go out of business. Look at the ridiculous prices optical drives are selling for: $29? How do you make a profit on that?

This is only temporarily good for consumers. Lower prices after a certain point means lower quality, lower warranties and horrible service. Dell is getting hit with this now too.
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Ducc
Posted: Oct 27 2006, 08:12 AM


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Yea, I've noticed it too. It sucks to see that happening.
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_Z_
Posted: Oct 27 2006, 09:44 AM


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That's unfortunate. Lite-On made some pretty decent stuff. I abhore what Wal-Mart is doing, and was further angered after watching Frontline's (PBS) report on how Wal-Mart is changing the face of the retail world. So much so, that I refuse to shop there anymore. Short-term, it's great for the consumer. But in the long run- it's going to drive a lot of good manufacturers to close their doors, or sell out. And then all we'll be left with is cheap junk. sad.gif

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Andrew
Posted: Oct 30 2006, 08:06 PM


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Looks like someone screwed up?

Lite-On Not Pulling Out of Consumer DVD/CD Burner Market

Oh the joys of news on the Internet. shrug.gif
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Ducc
Posted: Oct 30 2006, 08:33 PM


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Oh. Nice.
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_Z_
Posted: Oct 31 2006, 03:38 AM


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So that's good news at least...

I'll still stay away from Wal-Mart though. wink.gif

I guess this is just another case of ...."Don't believe everything you read on the Internet" huh.gif shrug.gif

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