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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: JesseK who wrote (10249)	4/10/2000 2:14:00 AM
From: Craig Freeman	Respond to of 60323

Jesse, I clicked on the "Job Opportunities" link at SNDK at 2:09 EST and got "The Page Can Not Be Found." Makes you wonder if Ausdauer got a late-night job offer. If so, I hope he accepts :-) sandisk.com Craig

To: JesseK who wrote (10249)	4/10/2000 9:58:00 AM
From: Ausdauer	Respond to of 60323

I hope everyone had the chance to read my post regarding Simple Technologies. Message 13369885 In my quest to further my knowledge of the CompactFlash market I also contacted several companies last week by e-mail. I got the following reply from Delkin Devices... "We manufacture our own CompactFlash. Our manufacturing is done in San Diego, CA. We use Hitachi brand Flash. We are unaffected by the lawsuit because we have no connections whatsoever with Lexar, and we pay royalties for the portion of our product that uses SanDisk patented technology. Feel free to contact us again if this does not answer your questions. COMMENT: The question that remains for me is what exactly this "portion" of the Hitachi flash chip is licensed from SanDisk and whether CF assembly patents are included in this royalty payment. Hitachi uses a different cell architecture (AND) and also manufactures their own microcontroller. The royalty payments to SanDisk may cover such features as cell architecture, configuration of memory arrays, block writing and erasing, detection of cell fatique and wear leveling and not have anything at all to do with CF assembly. I think it is impossible to know exactly what is recognized and unrecognized at this point. _____________________________________________________________________________ I also e-mailed SST asking where their cards were sold... "SST does not supply CF cards directly to the retail market, we supply to large OEMs and private labels. Please go to our web site, www.ssti.com, and you will find a list of our approved distributors. Please contact your local SST distributor to purchase small quantity CF cards. Another very good vendor that would satisfy your CF requirements is Kingston Technology, www.kingston.com, call them directly (800)337-8410. COMMENT: I am happy that SST has negotiated successfully with SanDisk w/r/t CompactFlash assembly. This little company is similar to SanDisk in that they are struggling against industry giants, have an IP that is licensed by some of the larger players in the semiconductor field, and are currently fabless. Had I realized that they address a market segment not currently served by SanDisk I would have never sold my shares last Summer. I was fortunate to have been able to buy SSTI at only $1.75/share, but did not have the knowledge at hand to know that their book of business was based primarily embedded applications such as PC Bios and smaller, low density, industrial flash memory applications for the telecommunications (handset) industry. The fact that they have no control over their chip supply could spell trouble down the road for them as it is unlikely they will survive on current licensing revenues alone. Ausdauer

To: JesseK who wrote (10249)	4/11/2000 8:01:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Simplicity I wrote yesterday about simplicity. "The floppy disk was at one point in time SanDisk's biggest threat. The Mavica was a huge success and continues to have a significant following specifically because of the PC interface it exploits. In fact, many place this functionality ahead of all other attributes such as storage capacity, CCD resolution, camera bulk and write speed." For those who have not taken the time to go read about Kodak's insights with regard to consumer perceptions of the digital photography movement I would recommend making time to visit the link I posted earlier today... kodak.com Fortunately for SanDisk the digital camera makers will shoulder the burden for getting most of the message out. The camera manufacturers need to focus not on the technology, rather the benefits of digital photography over standard film photography. This is particularly challenging given that the immediate costs remain relatively high, especially compared to a $10.00 single-use camera. But the world of digital photography is coming together rapidly. There really are no pieces of the puzzle left to be solved except for cost and consumer acceptance. Only after these issues are completely addressed will the mass market for digital cameras take off. Consumer acceptance is a difficult task. However, I personally believe that the penetration of the PC in the mass market and the widespread acceptance of the Internet form the underlay for the digital photography boom. In other words, we were staring into a deep chasm a few years ago. We were just starting to see some early production of digital cameras and acceptance by a few brave tinkerers, hobbyists and electronics fanatics, but could not get past that. We had one salvation, however. The mass consumer markets familiarity with the PC and the Internet helped digital photography scramble across this chasm. They formed a wobbly footbridge to the other side where millions of potential users awaited. There was no welcoming committee, however. No ticker tape parades or fanfare. Rather we stalled briefly due to costs issues and consumer dissatisfaction with image resolution. Over the past 2 years both of these issues have been addressed and continue to evolve. It is clear that business users (who followed the early hobbyists) brought the notion of pleasure-oriented digital photography home on the weekend...and it was fun! It wasn't just fun, it was infectious, habit-forming, contagious and incurable. Digital photography is, to a great extent, self-perpetuating. And that takes some of the pressure off manufacturers. The next important step was the rapid development of complementary pieces of the puzzle that filled the gaps and created a chain of value for the consumer. This included things such as the $1000 PC with 64MB of RAM, inexpesive "off-the-shelf" photo editing software from mulitple vendors, embedded photos in e-mail, free webhosting services, on-line photo processing and delivery and high resolution photo-quality ink jet printers. The fact that each of these important ingredients seemed to develop almost concommitantly is astounding. Each of these value-added functions will help to stimulate user interest and draw in unsuspecting participants. To be sure, simplicity is required of each of the participants in this value chain. If any step along the way acts to impede progress or detract from the user experience, the whole concept goes away. Where does that leave SanDisk??? I have told friends and family that the most simplistic "digital darkroom" is a digital camera, a CF card with a PC card adapter and a laptop. Nothing could be more simple. But this gets a bit more complex because most people want to use their PC as a "home base" and connectivity issues become central. The digital camera manufacturers also did the disservice of aligning themselves with several competing removable memory standards. Each has its own name and attributes. Then it comes out that each is "flash memory". The first area of confusion most newcomers encounter is related to the notion of "flash" in this context, as it is frequently associated with "flash bulb". CompactFlash can be confusing to consumers, as can any of its competing standards. Now compare that to a single floppy disc used to store files. Now that is an easy concept that completely removes any doubt about function or connectivity. It is for this reason that the Mavica (and SmartMedia, for that matter) had distinct advantages over CompactFlash...simplicity and connectivity. There are other simple solutions coming along now. USB card readers (ImageMate), direct USB connectors, memory card slots in printers, etc... Eventually consumers have other options. I suspect at some point they will be able to take pictures on CF cards, delete undesirable photos on the fly, and drop off the CF card at the local developer for prints. This removes some of the convenience of digital photography, IMHO, but gives alternatives to those not willing to fidget with a nest of cables or a finnicky Windows OS. It also creates an environment for multiple card sales. One card in the shop, one card in the camera, and one card just in case. I have not seen SanDisk, The CompactFlash Association or any CF assemblers push this selling point. I think that the CF manufacturers owe it to the consumer to instruct them on ease of use. They need to demystify CompactFlash like Eastman demystified "nitrocellulose roll film". They need to recycle the concept that removable storage as a highly personal item that holds highly personal subject matter safely and securely. This is the exact marketing popularized by Iomega so successfully with its line of personal removable storage products. And no flash memory form factor offers better prospects than CompactFlash. Solid, safe, secure, dependable, indestructible, personalized CompactFlash. To date I am unimpressed by any of the efforts made to achieve "simplicity" in the digital film market. Ausdauer "SanDisk...Simply Unforgettable!"