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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 254.16

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3:59 PM EST

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To: Art Bechhoefer who wrote (4062)	1/15/2019 7:52:05 PM
From: SiliconAlley	of 4827

Demand for NAND flash is highly elastic and can trigger large price reductions, or increases as demand changes. This is not what elasticity is. Elasticity is not what happens to price when demand changes, but rather what happens to demand when price changes. Elasticity is not a bi-directional phenomenon, and is viewed as either elasticity of demand (with respect to price change) or elasticity of supply (with respect to price change). Here is a link to an Economics Basics article on the subject: investopedia.com A 20% drop in NAND prices would be due at least in part to lower production costs enabled by improved technology, such as 4 bits per cell and increased number of layers of 3D chips. NAND prices are a function of supply and demand, not of production costs. Production cost is what determines the margin gained (or lost) when NAND is sold. In addition, 4 bits per cell is not improved technology - its endurance is far less than SLC, MLC, and TLC. It is poor man's NAND.

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