Art,
re: You can depend on these ill-trained, inexperienced analysts to provide only the most simplistic, least accurate opinions. I don't know why their firms bother paying them.
It's not popular to defend analysts. But sometimes their research is pretty good. Their timing on upgrades/downgrades is usually lousy, IMHO.
re: No analyst has offered any data on profit margins related to price cuts. If the technology is improving, then profit margins will remain high. If technology is not improving materially, and if there is nothing to be gained from the learning curve that always goes with manufacturing of a new product, and if price cuts reflect ONLY a lower demand, then SSB and other similar analysts are correct. Frankly, I think they're dead wrong, and the data they've provided do not in any way argue in favor of their position.
Art, I think that SanDisk process technology, which will lower costs, is going to stay the same until Dominion starts producing product in volume. In the meantime, you have to admit that supply and demand will at least partially determine price and gross margin. I think that's pretty clear, from SanDisk's own guidance.
John |
