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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (37728)	1/10/2001 12:14:43 PM
From: Jason W	Respond to of 54805

Eli Harari's (SNDK CEO) interview yesterday on ON24 was significant. He addressed the pricing environment and how SNDK will benefit, among other things. I consider this a must read for anyone interested in SNDK. It was the most bullish I have seen Dr. Harari. biz.yahoo.com The following is mainly copy and paste from the transcript... What stood out to me, was: * There are literally hundreds of new applications and products that will/are use(ing) the new SD cards. * Nintendo will use SD. (I didn't know that) * Palm and SNDK will work together devolping uses for SD. * SNDK and CF- "It's consumer electronics, it's wireless, it's Internet. We're talking about literally tens of new major markets that are only just beginning now." * The FlashVision Company is proceeding very beautifully, it's a little bit ahead of schedule. We expect to start full production as scheduled by the middle of this year. * I think people really have the price pressure all wrong, in my opinion. Flash memory today is still too expensive. Flash memory price and cost has got to come down. Our strategy from day one has been to drive the technology... to drive the technology passionately. We're really passionate about driving the cost down. The cost has got to come down over the next 5 years by a factor of between 5 and a factor of 10. * . Consumer Electronics is price elastic. You need to meet price points. The only way you can do so is drive the technology, drive the manufacturing, drive the volume. Maintain very high quality. If we could achieve that and do it faster than any competitor, we're going to be able to expand our market. We'll actually benefit from the reduced cost and reduced prices. The key is to reduce your cost faster than the declining prices and faster than any competitor. * Dr. Harari said he is very happy with gross margins. * In Consumer Electronics price coming down means more people are going to be able to afford it, more people are going to use it, and more applications are going to be enabled by it. The key is you have to have control of your media... your flash memory. And we have that. We both develop it and we manufacture it. We assemble it and we test it. We are vertically integrated in all aspects. We have the lowest cost in the industry. * . I think that for the next 5-10 years the markets are going to grow faster that any one of us combined can bring to bear new capacity. And I think it's going to be a very exciting ride for the next 5-10 years. Very much like Intel's early years when they finally got the microprocessor design wins rolling out there. Just on an incredible expansion. Jason W