SanDisk Corporation (SNDK) Message Board

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To: slacker711 who wrote (44924)	7/15/2010 11:14:08 PM
From: Pam	of 54946

They could have said this about the 1st quarter, but when giving guidance for the 2nd quarter, they would have already needed to take into account the pricing gap. When they gave 2Q10 guidance, it is possible they didn't think the pricing would stay low for this long or it is possible that it will not hit them this quarter with their o/p mostly going to OEM and retail, where they still command higher prices because of their brand, as Sam alluded to in places like Staples, etc. FWIW though, I have never been a huge believer that x3 was going to be magic bullet for Sandisk. There is at least some performance gap and there is a lag before x3 is manufactured on the latest nodes. That removes much of the theoretical margin advantage. It is not going to be the magic bullet but it gives them some room to enjoy better margins. Eventually, everyone will catch up, just like they all did, migrating from SLC to MLC 2-bit/cell. The only difference this time around could be ABL which does give their TLC better R/W speeds compared to others.