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 282.58

+8.6%

Feb 6 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sam who wrote (30854)	1/5/2006 1:01:42 PM
From: slacker711	Read Replies (3) of 60323

I'm not so sure about this, at least about the second sentence. It depends on if there are still shortages or at least if supply/demand is still in balance or not. There is no point to cutting prices "hard" if supply is still constrained. No one, to my knowledge at least (admittedly limited knowledge), is breathing down their neck. Better to get as much cash as possible over the next few months to finance future fabs without having to go back to the markets with another offering. And to finance future products as well. I know that all of the articles have talked about the "shortage" of NAND flash over the last few months (I've posted quite a few)....but I think it needs to be asked, outside of the Nano, where is the shortage? I didnt see any form factor, density, or brand out of stock any where I looked. Amazon (and every other online site I visited) consistently had availability for the 1GB SD card (probably the sweetspot right now) and Best Buy was positively overflowing in flash cards. As for MP3 players, the Sandisk players were probably the second best selling players (online or B&M) and I saw no evidence of a shortage for them or any other non-Apple device. It seems to me that this Christmas was more a matter of supply meeting demand....which means that price cuts are very likely ahead of the supply that Sandisk has coming online. The key is that this supply is going to have a substantially lower manuafacturing cost...so I could definitely see GM's rising despite the cuts. I also could see some small cut backs in non-captive sources which would also help GM's. Besides my view of the current supply/demand situation, I would also add that a price cut at this juncture would really fit Sandisk's past history. They cut prices in Q2 of last year ahead of the 90nm supply hitting the market even though NAND seemed to be in short supply. Eric Stang of Lexar spent half of his conference call deriding the price cuts as irrational <G>. I look forward to hearing the same from him in about three months. Slacker

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next