WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 170.85

-8.7%

11:11 AM EST

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To: BillyG who wrote (18587)	1/25/2001 4:11:09 PM
From: Sam	Read Replies (2) of 60323

The inventory problem is with the OEMs, not in the retail channel, as I understand it anyway. I guess that the OEMs double ordered back in Aug/Sept when the world looked a lot rosier, didn't have as the sales they expected, and now have to work off their inventory. If that is how this happened, then problem is that Sandisk didn't keep in close enough touch with their customers to know how much they were double ordering. All the talk about CF being supply constrained through '01 probably contributed as well. They were extrapolating from the then current ordering numbers. Of course, that is what companies have to do, to some extent. They also said that MP3 players weren't selling as well as they hoped, and Nokia, Ericsson and Motorola have had problems selling as many phones as they wanted. Siemens--who was a 5% customer over the summer--has probably also had problems selling their phones, though I haven't actually seen any numbers from them. MMC goes into phones. Hence a falloff in orders and an inventory buildup.

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