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

To: hueyone who wrote (18528)	1/25/2001 12:06:37 AM
From: JesseK	Read Replies (1) \| Respond to of 60323

Huey, Eli stated sandisk had 28% market share in 1999 and he thinks, sandisk share was north of 30% for 2000. Thats what I heard sometimes its hard to understand Eli. My last long term buy was back in Oct. 1999. I will be looking to double my long term holdings sometime in the next couple of months, the market looks out a lot further than two quarters. One of these days Sandisk will just start going up and we wont know why just like we didn't know why it kept going down this whole time, maybe fidelity will find value in Sandisk again! Jesse

To: hueyone who wrote (18528)	1/25/2001 12:10:31 AM
From: Michael Kim	Read Replies (3) \| Respond to of 60323

Aus, any take on the licensing revenue situation? I mean royalties of $15 million per qtr - what's that about? Weren't we comparing SNDK to RMBS at one point and that the royalties were the creamy rich gravy to revel in? Two prior CC's mentioned TDK as the sole "potential" new licensee...I still have yet to hear of that actually materializing, and where are all the others? This is most troubling to me - I hate running out of gravy!! I am definitely miffed at Eli's recent bullish comments preceding this downbeat quarter. How do we as investors reconcile his insistence on there being no overcapacity or demand problem two weeks ago with the guidance of today?? However, in his defense he is working with companies that have product they are getting ready to release later this year. He can be enthusiastic because he knows what's coming - but if anyone wants to buy this stuff, it's just not even available right now. You still cannot purchase a Palm Pilot that accepts any Sandisk product. A lot of the new demand drivers that we have been counting on are just now ramping up (Compaq iPAQ PDA, cellphones, internet appliances) or will not be in the market until later this year (Palm). Certainly Eli is more excited about what's coming down the road because he's seen it and touched it... Hang on until the 2H '01...

To: hueyone who wrote (18528)	1/25/2001 9:44:24 AM
From: Art Bechhoefer	Respond to of 60323

Huey, your estimate seems to be on target. The only discussion on market share during the conference call was in response to a question from Pat Kim of Welch Capital. It was not clear to me whether the market share data were based on percentage of total units sold (removable flash cards, evidently) or percentage of total mb. It would seem more logical to base the market share on total units sold. But if you factored in the average unit capacity, then, because SNDK aims at the high end, particularly in its retail sales, the market share might be even higher. Your point suggests an interesting scenario for SNDK. First, because removable flash card unit sales are considerably less than sales for embedded flash cards, it seems that SNDK will increase its penetration of the whole flash memory market as it gets more involved in embedded memory. Second, with production starting later this year in 512 mb and 1 gb removable cards from the FlashVision joint venture in Virginia, it is likely that SNDK will greatly increase its market share in removable cards as well. In general, a company that is able to dominate its market niche (not necessarily dominate by producing more the 50 percent of the output, but simply by holding a greater proportion of the market than others) can strongly influence product prices. Intel, as an example, is able to drive down prices of competing microprocessors simply by adopting a certain pricing strategy regarding its own chips. Dominating a market doesn't always mean raising prices, but in cases where demand is highly elastic (as with flash memory), the lower the price, the higher the consumer demand. When Intel lowers prices on its microprocessors, what usually happens is that the competitors do the same, and as a result have a more difficult job of finding enough research and development money to remain competitive. Art