WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 176.34

-5.8%

Dec 12 9:30 AM EST

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To: pass pass who wrote (23805)	10/12/2003 10:54:00 AM
From: Art Bechhoefer	of 60323

>>when all those Taiwanese flash card makers start to commoditize the market<< Flash memory in many ways is already commoditized. Certain designs for card physical format or methods for storing, retrieving information, and prolonging useful life of the device are proprietary. When you say that flash memory units are now selling at about the same price as a few months ago, what you are really saying is that demand is soaring. The fact is that flash memory prices are dropping because companies are learning how to make it cheaper, just as the semiconductor companies dropped prices on microprocessors for the last 15 or 20 years (remember Moore's law?). If demand were flat or growing only slightly, you would expect to see substantial price cuts, as happened in 2000 and 2001. But with demand increasing at its present rate, we're seeing stable prices, which translates into better profit margins for SanDisk, and probably even for Lexar. Art

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