Flash article Explosive Growth
This article demonstrates the Explosive Growth Sandisk should experience from the demand for Flash technology:
nikkeibp.asiabiztech.com
Info Appliance, Mobile Phone Firms Hungry for Flash Memory ICs
April 19, 2000 (TAIPEI) -- The booming global industries of mobile phones and information appliances (IAs) have fueled demand for flash memory devices ahead of other memory ICs.
Global flash memory production value expanded by 83 percent last year to US$4.56 billion, ahead of SRAM production and second only to DRAM production. A Japanese survey indicated that flash memory production could be several times higher this year, and might reach US$9.0 billion. U.S.-based IC Insights, a periodical, was even more optimistic, forecasting that the sector might top US$10 billion.
However, suppliers have been slow to boost production to keep up with the demand, sending the base price of flash memory units to US$3.74 last year. The price is likely to rise to US$5.25 this year, and perhaps to US$6.0 or more by 2002.
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When Sandisk realizes even higher prices and while still selling many more units, I don't needs to tell you what this can do to their earnings. We are talking about the possibility of bringing SNDK's present high PE ratio down to 20 or 30 within a year --if the share price stays the same as now. But somehow, I don't think SNDK shares are going to stay here at $100 for long ;) |
