XM Satellite Radio Holdings Inc. (XMSR) Message Board

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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: pcstel who wrote (2873)	9/24/2006 12:11:56 AM
From: kovachs	Read Replies (2) of 3386

But, it is some folks opinions that OEM costs are actually HIGHER than retail.. I mean if retail was higher, then that would go a long way in helping us figure out why SIRI's SAC/CPGA is higher than XM's. Are you saying that retail CPGA is higher than OEM? Here is David Frear on the Sirius conference call from last quarter responding to an analysts question. "What I can tell you is that as you know, we have two different levels of SAC. One that we have for our retail products where we can turn out new generations of products and introduce them into retail in the six to nine month timeframe, where we have a much longer cycle for introducing new products in OEM. So as we have talked before, OEM is a couple generations behind retail in terms of the products that are in the cars, meaning that the costs in those are higher. So as you look at our SAC guidance for the year of $110, what you can safely assume is that the SAC associated with our retail products is substantially less than $110 and the SAC associated with our OEM products is higher. "

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