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: Reseller who wrote (18974)	2/7/2001 9:10:58 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Reseller, Not to be excessively pessimistic, but... ...if you can use SanDisk's patented controller license-free, then why pay Lexar anything??? The fact that we haven't seen any new '987 royalties despite the settlement is disconcerting. No details given at the SNDK c.c., only that '987 also covers CF, plus MMC and SDMC. I hope that SanDisk legal is working day and night to make the '987 royalties materialize. The consumer market seems to be a race to sell inventory before price points erode to levels below the sum total of raw material and assembly costs. The only way to do this is sell everything each quarter, replace inventory with lower cost product, and sell that before the next manufacturing run. That seems to be a killer task. Without vertical integration, a timely retail sell-through and some cushion with royalty payments it would seem that success in this market will be hard to come by. Aus

To: Reseller who wrote (18974)	2/7/2001 9:44:36 PM
From: Ausdauer	Respond to of 60323

Reseller, FWIW... I guess that many CF assemblers faced with the option of either negotiating a license with SanDisk for their current product line versus purchasing/licensing/requalifying a Lexar controller would prefer to keep their current suppliers and set aside a royalty payment for SNDK rather that risk the business on a Lexar workaround. Aus