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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology
EDIG 0.00010000.0%Mar 20 5:00 PM EST
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To: PartyTime who wrote (14351)8/23/2000 12:08:29 PM
From: Jon Tara  Read Replies (1) of 18366
 
"How smart is EDIG? Well their first two OEM contracts are with companies that also build devices for other companies. It's like an exponential sales force in the works. Each of these two could produce several more contracts for EDIG."

Not necessarily.

In both cases, these OEMs are producing the product under their own brand.

They are competing with their customers.

Maybe they are getting frustrated with the OEM business, and want to start making their own products.

But this isn't the kind of move on the part of an OEM that is going to endear them to their customers.

And are these really OEMs in the traditional sense, or assembly houses? How do you think that manufactuers might react to uppity assembly houses that start marketing their own products in competition with theirs?
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