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: Ausdauer who wrote (18808)	1/29/2001 7:15:43 PM
From: Steve 667	Read Replies (2) of 60323

It has to be even worse than it appears! Regarding: Private labeling Steve, SanDisk's brand exposure from these OEM agreements are minimized by private labeling. For some OEM's like Kodak who sells flash separately under their own name. But for others like Nikon, they just include the original card with the manufacture label and card maker literature. The value in selling to OEM is really to get your product into the hand of the consumer. If you get your card and promotional material included with a camera that is sold, that consumer is more likely to buy your product when he goes to get a higher capacity card. So from that perspective it is almost worth it to sell them close to cost! Thinking out loud. This just occurred to me. Consider that the TOTAL product revenue came in about $35 million short. They stated that retail sales were better than expected, so that means that the OEM sales must have been more than just bad to make the average of the two only a 2% increase over the previous quarter instead of 25%. What number do you add to 25+ to make the average of the two numbers come out to 2 ? The fact that OEM is low margin makes it even WORSE Magnitude Magnitude Magnitude!!! Steve 667

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