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Technology Stocks : WDC/Sandisk Corporation
WDC 262.70-8.1%Feb 10 3:59 PM EST

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To: limtex who wrote (30887)1/7/2006 1:37:58 PM
From: inaflash  Read Replies (1) of 60323
 

slacks - gorgeous..e200 can give ipod a real headache.


At current MSRP, Sansa is going to have the same demand/pricing pressure as the 2 vs. 4 GB iPod nano. Supposedly, Apple cut back on the 4 GB version with lower margin to build more 2GB versions and save on available flash at the same time.

For the Sansa, you could pay $200 for the 2GB version and add 1GB microSD for $120 and chew up the slot for only 3GB, or pay an extra $50 for the 4GB version. Same logic for the 4GB vs. 6GB models. The decision to upgrade at these price levels seems to be a no brainer. Sandisk has the pricing advantage on flash memory and looks to be leveraging it against Apple on this front. This suggests to me that the 2GB models will be more heavily discounted, putting even more pressure on the low end iPods.

From recent press releases:

SanDisk’s suggested retail prices for the newest cards are $119.99 for the 1GB microSD and $199.99 for the 2GB miniSD.

Model
Suggested Retail Price
# of songs 2 (MP3)
Playback time 3
# of songs (WMA)
Playback time
Sansa e250 (2GB) 1 $199.99
480
32 hours, MP3
960
64 hours, WMA

Sansa e260 (4GB) 1 $249.99
960
64 hours, MP3
1,920
128 hours, WMA

Sansa e270 (6GB) 1 $299.99
1,440
128 hours, MP3
3,840
256 hours, WMA
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