e.Digital Corporation (fka EDIG)

[owd3]

factoring in the returns and all other cost, do you think they were making money on these units? The only reason to discontinue this product is if they thought they could get a better return putting the capital involved with making and marketing this player into something else.

Now the folks at GW are certainly smart enough to initially price the player where they would generate a big enough return if all their volume and cost assumptions were met. Since the price did not change, either the volume never got to where they thought it would or the cost was not manageable.

Again, assuming the GW folks are fairly sharp, they would have had a fairly good idea of cost upfront with the exception of the return rate and warranty cost.

So either the volume was never there or they were taking a hit on return/warranty cost.

Either way, another disaster for EDIG.

I mean that is the simple business explanation; I suppose GW could have joined the vast "basher" conspiracy against EDIG!!!