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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 239.51+15.3%Nov 7 9:30 AM EST
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To: SiliconAlley who wrote (4565)2/3/2021 11:43:50 PM
From: Elroy  Read Replies (2) of 4823
 


Price reductions in NAND are driven by cost reductions.
Wrong. Cost reductions improve gross margins, they don’t force price reductions. Competition (price wars) drive price reductions. Any NAND maker that doesn’t match price cuts of their direct competitors loses share. NAND makers will participate in forced market price reductions regardless of where they are on the cost reduction curve. It happens independent of the cost reduction effort. That’s what a price war is....

Ifyou did your due diligence, you would find that while some portion of the disk drive market is cannibalized by SSD's (primarily the PC market), the disk drive market is growing, and a segment of it is growing faster than the cannibalization reductions. In summary, the disk drive market is changing, and driven not by consumer PC's, but massive increases in datacenter cold storage requirements.
Sounds like tape storage a decade ago. Isn’t that what I said? Total disk revenues are a growth area? I haven’t heard that. My understanding is disk sales, in total, are declining, each year. If disk sales grow each year, I might revise my negative view of WDC. I’ll have to check that out. But I don’t think WDC breaks out disk versus flash anymore, probably to hide the sad decline of disk based storage.

Micron Project X. Do your due diligence.
Project X? Is Micron making a disk drive?
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