How does a company like Lite-On make a profit...

[fkloster]

...selling cutting edge optical components for the same price per/unit that it costs to have your windows washed by two Mexicans?

This thread has been locked due to posts which are Off Topic at the end.

AnandTech Moderator

 

[rudder]

Our new compaq 1u servers here at work all have lite-on cases. They are probably put together by people making 50 cents a day. This allows them to sell other stuff cheaper to be competative.

 

[Megatomic]

Bulk. That's the key word. They make a$$loads of stuff and it all sells well. Lots of stuff for little profit still equals lots of $$$$ on the bottom line.

 

[MrDudeMan]

Originally posted by: fkloster
...selling cutting edge optical components for the same price per/unit that it costs to have your windows washed by two Mexicans?

lol...good analogy

 

[Smilin]

Because if you saw the actual component and manufacturing cost of this stuff you'd throw up.

Pennies man...it cost like pennies for a CDROM motor.

Can't say I've actually had any Mexicans do my windows so I can't really relate, sorry.

 

[chizow]

All socio-economic references aside, Lite-On IT doesn't have the overhead associated with other drives that are mfg, distributed, packaged, etc. that other companies deal with in-house. You basically pay more for the name on the box. Optical drive electronics aren't particularly "cutting edge" by any means; my cousin is a firmware engineer that has some experience with optical drives, and when I asked about burner technology advancements, he said the most difficult obstacle wasn't in the drive mechanics or electronics, but the firmware/controllers that synchronized the laser to the rpms.

 

[fkloster]

Optical drive electronics aren't particularly "cutting edge"...

imho any optical CD burner capable of burning @ over 50x and sells for $52 in U.S. funds is very cutting edge and very freakin' cheep! considering my first Philips 2X burner I paid upwards of $320 U.S. funds for and it died after 1 year...

 

[1ManArmY]

hehe I paid 300 for my first burner HP 8100 back in 1999 I believe. It's amazing Lite-on can sell a product for 52 bucks and make money.

 

[arcenite]

They make as much money as they need to. Compare them with the more expensive Plextor/Yamaha. If they sell twice as much, they make twice as much. As people continue to learn the qualities of Lite-on, probably equal to Plextor/Yamaha, for alot cheaper, I would presume Lite-On is probably making out more than very well..

Bill

 

[oldfart]

They lose money on every drive, but make up for it in volume!

 

[human2k]

what you got against mexicans?

 

Im white and I will wash your windows for $52 by myself.

 

[tec699]

Originally posted by: human2k
what you got against mexicans?

Yea!! I work w/ a couple of Mex's and they be coo. They are hard workers. Especially this cutie Mexican momma they have working at the mall. Yum.. Yum...

 

[bacillus]

Originally posted by: Phocas
Im white and I will wash your windows for $52 by myself.

LOL

 

[Vonkhan]

Revenue = Price x Volume
Profit = Sales - Cost of Goods Sold(CGS) - Operating Expenses

LiteOn has based it strategy on High Volume and minimized operating expenses. They make less $$$ per drive, but more in pure $ Revenue and Profit than the other companies. Note that they dont skimp on the CGS, which generally translates into a good quality product.

Dont knock on Mexicans or immigrants. Cheap skilled/unskilled labor is essential for rapid growth.

Management 101 Sorry

 

[SgtZulu]

. As people continue to learn the qualities of Lite-on, probably equal to Plextor/Yamaha, for alot cheaper,

Funniest thing I've read all day

 

[eklass]

...notice the lack of lite-on adverts...

 

[arcenite]

Originally posted by: SgtZulu

. As people continue to learn the qualities of Lite-on, probably equal to Plextor/Yamaha, for alot cheaper,

Funniest thing I've read all day

I don't understand... Are you saying Lite-On is not of high quality? Or are you talking about all the bells and whistles the others have (read: don't need) for a CD-RW?

Bill

 

[fkloster]

Originally posted by: human2k
what you got against mexicans?

Ummm, who said I 'got' somethin' against Mexicans?

 

[Spicedaddy]

Originally posted by: SgtZulu

. As people continue to learn the qualities of Lite-on, probably equal to Plextor/Yamaha, for alot cheaper,

Funniest thing I've read all day

yeah, It's funny because it's true.

 

[JSClark]

I paid 100 for my 2X burner back like 3 years ago... today I have a PHilips CDRW 24/12/10 I bought at Wal-mart for 70 bucks...works very well for me

 

[formulav8]

I paid $145 for a 4x4x32 burner a few years ago. I thought that was a good deal at the time.

 

[Johnbear007]

Racist comments are not funny.

 

[arcenite]

I paid around $200 for my Phillips 4x (Black and Gold) CD-RW. I then paid $200 for my Yamaha 24x. I wish I knew of Lite-On when I made that purchase!

Bill

 

[iZero]

I think it's more a matter of other companies charging a significantly higher percentage above their actual costs than Lite-On does.