WDC/Sandisk Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation

WDC 161.71

+2.5%

1:24 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Steve Lee who wrote (21457)	1/16/2002 8:48:23 PM
From: Art Bechhoefer	Read Replies (1) of 60323

>>Am I right in thinking SNDK makes royalties on SD whereas CF is a standard?<< As shown by the results of various patent suits, SanDisk still has some proprietary CF products, but not to the exclusion of other similar products on the market. The SD card seems to have more SanDisk proprietary technology, but again not exclusively, since many manufacturers have been allowed to use this format without paying royalties. Overall it's a fuzzy, not entirely satisfactory situation that results in CF and SD both being priced more like commodities and less like proprietary products. The significance, of course, is that profit margins are more like what one expects from a commodity operation, with the low cost producer in a better position to succeed. If there were sufficient proprietary technology in these products, the gross margins for a company like SanDisk would be much higher. Art

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next