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

To: Sam who wrote (27877)	4/11/2005 12:16:08 PM
From: slacker711	Read Replies (1) \| Respond to of 60323

Lee forecasts NAND demand to outstrip supply by 5% to 10% this year. Even as more and more DRAM makers boost the supply of NAND due to the relative ease in shifting production with little capital investment, he still expects a "slight" shortage in 2006. An undersupply situation of 5-10% seems like a huge number. I wonder what ASP Samsung uses to come up with that projection. I would have thought that profit margins from flash were larger than those from DRAM already. In fact, it was my impression that DRAM businesses operated on razor thin margins due to competition. Guess not for Samsung, at least. I wonder what their accounting is like. I think they might have meant to say profits and not profit margins in that quote. I am fairly sure that Samsung has stated that NAND had the highest margins in their memory division. Slacker