WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 156.65

-5.7%

3:25 PM EST

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To: Ausdauer who wrote (25624)	4/17/2004 1:48:26 PM
From: slacker711	Read Replies (2) of 60323

Some random notes from the Samsung CC....as always, I would recommend listening to the call if you want a full review. At times, some of the numbers can be a little hard to understand.....so if any of these numbers seem way out of line, please let me know. samsung.com Nand Bit Growth ASP (QoQ) Q1 '04 21% Flat Q2 (E) 31% Flat to slightly down CY '04 184% -30% to -35% - For the market as a whole, they expect bit growth to be about 100% for the year. - They are producing 1 gigabit chips at a 9:1 ratio to 2 gigabit chips. They expect this ratio to shift to 2:1 favoring the 2 gigabit chips by the end of the year. This will be a result of die shrink (and not MLC). They are focusing on high density chips for MLC....should have a 8 gigabit MLC chip by the end of the year. - Samsung isnt really effected much by the drop in spot prices for flash since most of their product goes to OEM customers. - An analyst asked specifically what Samsung's response would be to the 20% price cut by Sandisk. The response was that they see a substantial gap between their price and the retail price and they would like to reduce this as soon as possible (watch out Lexar!). Interesting to see the contrast between Samsung's comments now and those given during the first quarter CC. They were looking for internal bit growth of between 180% and 200% (now 184%). They also announced expectations for a 40% drop in ASP's (now 30%-35%). wrhambrecht.com Overall, it looks like the pricing/capacity environment is actually getting better for Sandisk. In light of that, I think you can only accept Sandisk's justification for their price cut. There had to be a strategic reason because it doesnt seem to be a competitive response to the current market. Slacker

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