Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: stockroach who wrote (13549)	2/15/1999 5:08:00 PM
From: Justin Pressley	Read Replies (1) \| Respond to of 13925

3rd Generation DVD.. This thing is hot.. I've had 2 orders with 2 different companies and both couldn't fill it. I just placed another order with a company out of NY who said they had it in stock. I called about 10-15 companies and none had it. I'd imagine this will help earnings this Q., but I wonder what the problem is.. I started to order the drive and the card separate, and download the software off the website, but decided against it. Anyone having this problem? BTW, the 5.1 Desktop Theatre speakers sound awesome. Can't wait to hook in the DVD. JP

To: stockroach who wrote (13549)	2/15/1999 8:07:00 PM
From: Fred Fahmy	Respond to of 13925

stockroach, <How do you know that all OEM margins are "very thin"? > I wasn't saying that the OEM's themselves had thin margins. I was saying that when CREAF (or most peripheral vendors for that matter) make deals with OEM's CREAF accepts lower margins (usually significantly lower than what they would get for the same product if it were sold through the retail channel. There is definitely some trade off between pushing more volume through OEM deals and cannibalizing some of your retail sales. You can't assume that all of the sales to OEM's are truly incremental, but hopefully a great deal of that volume is incremental. In addition, sales through the OEM's helps gets your name out there and opens the door for additional deals. Bottom line, the more sales the better, even if they have to come at lower margins as long as the total margin DOLLARS, not necessarily margin PERCENTAGE, increases. For example I would rather sell 500 DVD kits to OEM's for $180 then sell 300 via through the retail channel for $220. Of course both would be even nicer <gg>. The other thing about increasing total volumes via OEM's (albeit at lower margins) is that increased volumes decreases unit cost by spreading the fixed portion of cost across more units. Hope that made some sense. Still painfully long, FF