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

To: Herb Fuller who wrote (12540)	7/5/2000 5:09:23 PM
From: Tumbleweed	Respond to of 60323

It is no wonder the stock price is falling due to the fact that SanDisk will be dropping their chip prices 90% over the next 5 years, to compete with magnetic storage, and therefore will have to produce 10 times as much product to keep the same revs as they will do this year. I'm not sure where Sandisk is competing with magnetic storage (I presume you mean rotating). MP3 players? Dont see many of those with 500MB discs in. Digi cams? At the very high end, a few units, but not many are willing to buy a $1000 camera and then add 50% to the price immediately with a 500Mb disc. Or a $500 camera and double the price. CellPhones? Yeh, right. The new discs? Dataplay, etc. Where are the design ins? What are the costs of launch? WHat are the added costs of a device with one in. As to the price dropping, I'd love to see a price drop, they would sell more and make more money. At the moment sales and therefore profits are constrained by limited supplies. And longer term, who do you think is going to be able to drop prices and still make money, someone making a device with no moving parts where added output makes little difference to cost, or someone making a complex multi part device to extreme tolerances? (CF is just made to high tolerances) JMHO Joe