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: Craig Freeman who wrote (24415)	12/24/2003 9:29:23 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Craig, though you may find it easier to buy a Lexar card because of its speed label, my hunch is that the reason a retailer carries Lexar, Samsung, or SanDisk products is based mainly on the price the retailer pays and the potential profit margin on each item. Samsung may follow a low price strategy to gain market share, but the real issue is whether that strategy can drive competitors out of the market before it causes financial problems at Samsung. So far Samsung has not dislodged SanDisk, and I suspect that it takes more than price to do so. Location, for one. Though you think a $0.29 hamburger might stick it to McDonalds, remember that part of the problem is finding the right location to sell the hamburger. If you look at SanDisk, you'll see how the company works with distributors to assure widespread sales outlets in the U.S. as well as in Europe and Asia. There is a growing amount of evidence that would point to marketing being one of SanDisk's strengths--even more than manufacturing efficiency and proprietary technology. The bottom line is that SanDisk is doing pretty well in terms of increasing sales and decent profit margins. Add that to a good looking balance sheet, and we'll see whether investors are impressed. Art