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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: BuzzVA who wrote (8638)11/28/1999 3:46:00 PM
From: JimC1997   of 18366
 
Right, I don't see much, if any, U.S. production of these devices.

Another thing to keep in mind when making revenue projections is that the consumer selling price of music players will certainly fall rapidly. I suspect that the final, stable price will be somewhat higher than that of a good cassette player, but not by much, say $40 or $50 in a couple of years.

The record labels will want the price as low as possible to encourage widespread adoption and thereby foster on-line sales of music. They may even be willing to subsidize the retail selling price (or possibly give away the players) to get them into as many music-buyers hands as possible.

e.Digital would be well-served by a pricing structure in their contracts that is based upon a fixed price per unit for their engineering design and MicroOS (as opposed to a percentage of the final selling price.)

JimC
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