Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Road Walker who wrote (16585)	11/13/2000 5:33:13 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

John, thanks for the note suggesting that the drop in high density flash memory prices reflects the commodity nature of the flash memory market. I think this is only partly true. What is also relevant here is the continuing improvement in productivity, allowing manufacturers to reduce their prices. This does NOT necessarily mean a weak market or pressures on margins. If anything, what it does signify is that companies such as SNDK will receive LOWER royalties per unit, since the selling price of each unit subject to royalties is lower. But this can easily be compensated by an increase in total unit sales. I would not take a pessimistic view of the market, based on the views of the SSB analyst. Art

To: Road Walker who wrote (16585)	11/13/2000 6:17:42 PM
From: Ausdauer	Respond to of 60323

John, flash will always be perceived as a commodity... ...and little effort has been made to date to help segregate the flash market into higher profit vs. lower profit centers. Similarly, there has been no attempt to separate commodity status from "commoditization". SanDisk will be a low cost producer of ultra-high density storage flash and an innovator in removable flash card solutions. I think it is much too early to dismiss them. That said, the potential for over-capacity is a real one. I still see the flash card market as SanDisk's biggest potential winner. The fact that they are branching out into embedded flash may be perceived as a defensive move with Bluetooth becoming a reality over the next few years. Thus, when asked about their feelings about Bluetooth, SanDisk has a stock reply... "We have a product that interfaces nicely with Bluetooth enabled devices." Also, SSB is low on my credibility list. Aus