Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: bobs10 who wrote (4159)	9/25/2008 4:34:35 PM
From: Joe NYC	Read Replies (1) of 4590

Bobs, Sounds pretty rational to me. Dario, says everytime he gets a chance, that price erosion is normally 6% to 7% a q. 14% for the whole year of 08 sounds pretty good. If prices only drop to $1.6 next year then that means a price drop of only 7% for all of 09. Of course SPSN has a couple of things going for it the other players don't. Namely, they and Numonyx are the only guys producing the high density nor chips that generate the most $s and SPSN's costs normally drop by 10% to 12% a q. I think there are 2 concepts here, costs per bit and ASPs. Cost per bit is what normally drops 6 to 7% per quarter. How this translates to ASPs depends on product (density) mix. I guess the dropping ASPs indicate that the higher density, high ASP parts are not shipping in sufficently large quantities. Joe PS: significant drop last couple of days. Is it the downgrade or is it because of this forecast of shrinking NOR?

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