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

To: add who wrote (17835)	12/30/2000 10:52:32 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

I think the discounting of the 32(MB) and 64(MB cards) was aimed to drive LEXR out of the market. With the slowdown in the economy, I expect demand will equal supply sooner in 2001 than most people expect. This is the reason for the ML downgrade. Given a balanced situation, you have to compete on price and features. I think the two features that stand out head and shoulders above the others is price and capacity. Add, I am not sure that driving Lexar out of business is part of SanDisk's agenda. Lexar has decided to offer a premium product at a premium price. Card speed is the selling point. While this may be an important attribute I still agree with you that price and capacity are the main selling points. As you stated, demand and capacity may come into better balance in 2001. The question remains whether this is the true motivation of the ML downgrade. Without a discussion of '987 licenses or the effect of increasing worldwide demand for storage flash on established licenses from SNDK to Hitachi, Toshiba, Samsung, and the rest I think the ML warning was a bit scant on substance. Perhaps they think shrinking product margins will more than counterbalance gains from licensing. I suppose that could be true. Many others apparently do to. Aus