WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 172.26

-2.2%

Dec 31 3:59 PM EST

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To: clean86 who wrote (52083)	1/26/2012 11:09:10 AM
From: Art Bechhoefer	Read Replies (2) of 60323

Re: Why Apple isn't buying much from SanDisk. You may recall that Eli mentioned on numerous occasions that SanDisk was not interested in dropping the price of its 3-bit NAND units, even though they were less expensive than equivalent MLC chips. Seems to me that SanDisk's policy is to keep product prices as high as possible in order to create higher product gross margins. That policy would run counter to what Apple does; namely, to search out the lowest price component suppliers. And the fact that SanDisk is delaying completion of Fab 5 again suggests that the strategy of maintaining high product prices is more important to management than a strategy of increasing unit volume, albeit at lower profit margins. As to a client SSD, I would broaden that view to include ALL PRODUCTS. SanDisk, as far as I can see, has no products that distinguish themselves sufficiently from the competition, either in performance or price. The lack of a clearly superior product makes SanDisk just another run-of-the-mill producer and also helps explain why companies like Apple do better. Art

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