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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (25850)	5/18/2004 8:22:49 AM
From: Road Walker	Read Replies (1) \| Respond to of 60323

Art, re: The question is whether a manufacturing and distribution chain involving Samsung, Lexar, and Kodak will be able to compete with the more vertically integrated approach taken by SanDisk. That and the question of the power of the Kodak brand. It may not be what it was 20 years ago, but I still think it has some influence with the average Joe. All else being equal, will he choose Kodak over SanDisk? John

To: Art Bechhoefer who wrote (25850)	5/18/2004 7:00:28 PM
From: Dave	Read Replies (1) \| Respond to of 60323

Art: 40,000, huh, for Lexar. There comes a time when it costs more to be the "biggest". I prefer "quality" over "quantity", don't you? RE:"The fact that Lexar has weaker retail distribution than SanDisk justifies its alliance with Kodak, which has a much larger distribution system. However, with Kodak using its distribution muscle and taking a cut of the action, it's going to affect profit margins for Lexar." First, I wouldn't call 20,000 storefronts "weak" and I doubt anyone else would. In the US, I'd expect to see Lexar in large retailers. Yes, margins might fall. We don't know for sure. The quest is, how much can this alliance increase the bottom line. That's all that matters.