Sirius Satellite Radio (SIRI) Message Board

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Technology Stocks : Sirius Satellite Radio (SIRI)

SIRI 20.68

-0.5%

3:59 PM EST

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To: pcstel who wrote (5270)	10/5/2006 12:16:52 PM
From: kovachs	Read Replies (1) of 8420

So, I just have one question?? If you believe that retail adds are so much cheaper than OEM on the CPGA side of thing, and hence are more profitable than OEM. Then why is it that SIRI losses and CPGA costs are so much higher than XM's? This is what is so tiring about going round and round on these issues with you. Because Sirius uses a different chipset technology than XM that is more power hungry, more complex, and more expensive. From day one they have struggled against this. One of the primary reasons for this is that their three satellite tundra orbit requires much more processing of the single than XM's two satellite system. At some point they may reach the cost effeciency of XM's chipsets but for now they remain 12-18 months behind cost wise. A big hint of this can be found in the fact that Sirius radios sell for more at retail than XM radios, yet still require a larger subsidy. They are simply more expensive to manufacture.

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