Huey,
These comments stemmed originally from Tae's investment presentation for SNDK regarding flash memory cards.
"As you know, flash memory speed is crucial to digital cameras because flash memory determines the rate at which a digital camera can take consecutive shots."
I am not sure this statement is entirely true for reasons we have discussed on multiple occasions. Again, host device functionality plays a bigger role in click-to-click speeds in my experience.
"Also, you and I have previously agreed that SST buys their high density NAND flash from Toshiba, Hitachi, and Samsung, not Sandisk."
I am not sure what point you are making. SanDisk uses 100% of its output for SNDK products. Also, I have doubts currently that SST CompactFlash or ADC products are sold in any great quantities anyway. The FLSH CEO stated, for example, that ADC has no announced design-ins and is incompatible with existing DOC slots. If you have information which indicates otherwise that you wish to share I would be appreciative. Also, in making your argument against SNDK you just listed the three most important SNDK licensees, IMHO. Because the terms of the cross-licensing agreements is confidential it is silly to argue the point.
"...but I doubt Sandisk will be just as successful if consumers buy products from competitors that have some sort of cross license agreement with Sandisk than if customers buy the products from Sandisk itself."
I think that goes without saying, Huey. SanDisk would not turn away additional market share. This is true primarily because there is no other manufacturer that I know of that sells CF in the US that controls high density flash design and manufacture, controller manufacture and final card assembly and retail distribution as well as SNDK. SanDisk is positioned to be the lowest cost producer, bar none. Also, they never intended to supply the entire market because of its massive size. That is exactly why CompactFlash is an open standard. The proprietary aspects of CF afford SanDisk additional revenues not only on the flash chipsets you mentioned, but also on facets of the controller/assembly design. This gives SanDisk the potential to prosper from any card sale regardless of origin.
"It is entirely possible that the market for low density code storage is growing faster than the market for high density data storage."
I have not researched this area and have not commented on the point you are making. If you recall the discussion started with comments on Tae Kim's investment piece on the market share of flash cards, not the low and intermediate density embedded flash markets.
Frankly, I feel constantly drawn in to discussions that seek to compare the investment opportunities of SSTI vs. SNDK and we have been down that road far too many times. The last time I engaged in heated discussions I was reported to SI and a campaign was launched to have me removed from SI. Therefore, I plan to refrain from participating further in these "SNDK vs. SSTI" brawls unless there is a direct connection to SNDK like the ADC discussion that we had. The future prospects of ultra-low density commodity flash have little to do with SanDisk's business plan.
Have a good weekend.
Aus |
