WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 179.56

+0.7%

Dec 24 12:59 PM EST

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To: Steve 667 who wrote (18802)	1/29/2001 6:23:52 PM
From: Ausdauer	Read Replies (3) of 60323

"Perhaps something like an OEM deciding to package Lexar cards instead of Sandisk cards with their product. Maybe Sandisk is embarrassed to fess up." Steve, SanDisk's brand exposure from these OEM agreements are minimized by private labelling. The type of bundling we are talking about is also low margin. In fact, the margin is so low that Lexar has even talked about doing away with it and proposed sending controllers to the OEM along with instructions to find a good contract assembler for the final product. I mean, that sounds like a slap in the face. I saw that HP was selling digital cameras with SNDK cards, but these are the old red and white labelled cards that don't really enhance brand recognition. I fail to see the wisdom in that arrangement. I wonder what type of OEM contracts were cancelled. The total dollar amount must be in the range of $35 million or so. Perhaps it was a telecom OEM that cancelled as Binx has suggested. Just thinking aloud. Aus

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