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Technology Stocks : WDC/Sandisk Corporation
WDC 157.75+0.4%Nov 14 9:30 AM EST

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To: Jim McMannis who wrote (11273)5/20/2000 9:59:00 PM
From: Ausdauer  Read Replies (1) of 60323
 
Must be some new technology coming out I've never heard of???

Jim,

LOL!

We have had lengthy discussions over the last 2 years about competing technologies. The most highly regarded competition was the Clik! and the microdrive. Clik! was a recycled idea that was ill-fated from the start. Some would say it was DOA. I cannot think of a single new digital camera design that utilizes Clik! Microdrive has other problems. It has priced itself out of the consumer market and also violates several key features required of removable memory solutions. Those violations are ruggedness (see my earlier post this week) and power consumption. IBM now appears to be giving microdrive away in OEM bundles. I have never seen microdrive at retail. Also, the OEM trends have been toward more compact removable memory solutions and away from the CF II slot, the requisite "parking garage" for the microdrive.

The Memory Stick is burdened by the fact that it is a duplicative standard, the lack of viable second sources, the lack of design-in wins, and Sony's decision to make it incompatible with Magic Gate in order to protect its music copyrights. This violates the principle of cross-platform compatibility that offers great value to the consumer.
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The following statement is on Sony's packaging:

The "Memory Stick" is not compatible with MagicGate. You cannot use this "Memory Stick"when MagicGate is required, such as recording or playing back music with "Memory Stick Walkman". In this case, use "MagicGate Memory Stick".
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I guess their marketing people really weren't thinking when they named their product line. Customer confusion will undoubtedly result with the attendant product returns. First impressions are important here. Also, the burden placed on the consumer because of the MagicGate copyright protection algorithm will likely lead most to choose an unprotected MP3 player of which there are now many on the market.

Finally, there really aren't any other viable alternative memory processes on the horizon. MagRAM and FRAM aren't even mentioned in the SanDisk annual report despite its wide reaching umbrella of safe harbor.

To our credit, this thread's commonsense approach to evaluating competing technology has been accurate and prescient. Our criticism of competing technologies has been characterized as "wishful thinking" or overly optimistic "cheerleading". Well, the proof is in the pudding.

The greatest challenger to date is SmartMedia. And the FlashVision JV effectively incorporates this product into SanDisk's armamentarium.

The only competitor we will have to deal in the future is MMC, the up-and-coming sibling of CompactFlash and another leading edge innovation courtesy of the engineers and visionaries at SanDisk.

Ausdauer
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