@jonsegue wrote:
http://www.digitalmusicnews.com/stories/110908sandisk
Seems that Sadisk may be ditching its MP3 players. Recent cuts in the staff are sure to not help the line of great MP3 Players. If anyone has more details please feel free to point me in the right direction. I know that being layed off is not always fun but cut in R&D by a tech company signal bigger problems.
I wonder if the clearances at Conns and Costco mentioned in another thread were brought on by sagging sales:
http://forums.sandisk.com/sansa/board/message?board.id=sansafuse&view=by\_date\_ascending&message.id=22035#M22035
http://forums.sandisk.com/sansa/board/message?board.id=sansafuse&view=by\_date\_ascending&message.id=22106#M22106
A few comments attributable to SanDisk Founder Eli Harari from last October:
http://www.electronicsweekly.com/Articles/2008/10/22/44760/sandisk-q3-worse-than-expected-ceo-says-layoffs-in-q4.htm
…Indeed, SanDisk Chairman and CEO Eli Harari revealed on the company’s Q3 call with analysts that capital expenditures have been cut and that layoffs are on the way.
“We now expect our 2008 capital investment outlays to be approximately $500 million below the $2.4 billion in our original 2008 plan,” he said, adding that 2009 capex investments are now projected to be approximately $1.3 billion, down from the company’s previously planned $3 billion.
In addition to the capex cuts, Harari noted SanDisk is restructuring its supply commitments and is taking actions to lower its operating expenses.
“These actions will be implemented in the current quarter and will include cancelling or exiting a number of product and marketing activities, and will result in employee reductions in R&D, sales and marketing, G&A [general and administrative] and operations,” Harari continued.
The company gave no further detail on the job cuts during its quarterly call.
“We will continue to invest in the areas that are most strategic for our future, including advanced NAND and 3D read/write development, mobile storage, solid-state disk, and slotMusic,” Harari said.
I hope the Fuze and its variants will weather the downturn. For me it was an impulsive buy, I had yet to own a digital audio-video player, didn’t know much about them and was attracted by the sale as I walked down an aisle. And I wasn’t sure I would hang on to it, but on first listen to the fantastic sound that changed: the addition of the FLAC format (which I had yet to use before the purchase either), the discovery of the fine voice recorder and the FM tuner, the convenience of the external micro-SD drive and the support through a periodically updated firmware and online forum solidified my affinity for the player and my decision not to make a gift of my first purchase.
And I suspect there are many others like me, people who do not know what they are missing until they have tried one.