Let's be honest with ourselves, friends. e.Digital is a contract manufacturer, plain-and-simple. Let's stop over-complicating matters around here. They act as a liaison between DigitalWay and third-party CE firms interested in turn-key product lines and they will assume the same role with the recently announced Asian OEM. To date, there is nothing to support the assertion that e.Digital can successfully find a profitable niche in this space - not MP3 players, not TeleMatics and it certainly won't be IFE devices. EDIG's margins have been non-existent and when they do appear they are razor thin. Put simply and honestly, e.Digital's role within the Engineering, Design, Development, Manufacturing product-cycle is rewarded with a very thin cut piece from the cash pie. My friends, so thin is the piece that the company has a difficult time generating a profit after accounting for the costs of goods sold. That is pathetic and speaks to the incompetence in the executive suite at e.Digital Coporation. Let’s stop turning our heads to what is going on here – the IFE device, just as which was undeniably true with the TeleMatics and MP3 Players, should be left on the Consumer Electronics Show cutting room floor. It just doesn’t have star quality. And if you think APS is going to be a white knight for the perpetual e.Digital-damsel in distress; think again – you’re wrong. APS is going to get it’s ass handed to it. It has no business trying to play big dog in a nascent, widely untested and uncertain, market space for consumer electronics. None. It lacks capital, it lacks managerial experience and it’s small size puts it at a distinct disadvantage relative to its much larger competitors. They do have a vision, I’ll give them that much. Vision; it is something that e.Digital investors have been disabused off from their managerial team for nearly a decade. Poway is left riding the coattails of true technological visionaries and grabbing for left over hay pennies embedded within the closing inefficiencies of the product development cycle.
Sincerely and Best of Luck To All...
Ibash Forcash, Pakistan
