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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: BUGGI-WO who wrote (3628)	3/27/2008 12:36:34 PM
From: bobs10	Respond to of 4590

you: Alot will depend on pricing and volume (of course). It seems, that some producers have problems, because they depend on 1,2 big OEMs. Its clear for me, that Motorola will suffer again (which is bad for Intel/STM) and Sony Eric. me: Yeah, the NAND/DRAM price drop is fairly recent and it's difficult for the OEMs to do that sort of sea change q/q so I'm kind of inclined to believe that SPSN demand remained in place. That is unless there was a general market drop in demand for cell phones. In that case I would expect higher end phones to be hurt more than the low to middle end of the market. AAPLs reduced NAND requests seem to validate that point of view. As far as MOT and SNE/Ericson go they've been falling apart for about a year now. The news that MOT is breaking in two makes me think that the phone part of the split isn't long for this world. I think 90nm fab25 products are more than competitive with what the other NOR players have. The only question I have is how competitive they are with NAND/DRAM alternatives given the falling prices. Right now SPSN can't compete in the higher density cell phone market, but all that should change with 65nm Eclipse. One more thing, in the q4 CC one of the reasons given for less margin growth was that a few of the OEMs were having difficulty bringing new products to market. Management seemed to indicate that the sales were just put off not cancelled. As I remember it management said there was going to be a quarter delay, but who knows? If the market is soft perhaps the OEMs are putting off the new products even longer?