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Technology Stocks : WDC/Sandisk Corporation
WDC 200.46+6.8%Jan 9 9:30 AM EST

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To: Art Bechhoefer who wrote (27464)2/16/2005 3:40:05 PM
From: Road Walker   of 60323
 
Art,

re: Selling to retailers directly, rather than selling unlabled goods to a distributor, results in higher margins.

Not always. Remember Intel averages 55%-60% GM's.

re: Intel tried this a few years ago and was unsuccessful.

So true, what a disaster.

There are very few companies that are good at both OEM component manufacturing and consumer branded manufacturing. I suppose it is the inherent problem of competing with your customers, and also it's a different mindset.

Actually Intel should be commended, it's one of the few OEM component manufacturers that has a significant brand presence, and it has a VERY significant brand name.

John
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