Julian Ivan-Alexander

Seeing an End to the iPod's Hegemony

Words fail me, and that's rare.

Apple, On Huge Order, Breaks NAND Flash Supply

Wall Street can't see through its darkened Windows (geddit? haha - groan) and is blind to the Apple delivery trucks zooming past them all over the world delivering 61% Mac sales growth and rolling out the iPhone to 75 countries.

But what do you expect from a bunch of numbskulls sat behind their Dells trading in their cubicles: inshight, imagination, and cutting edge analysis?

Some Troubling Data For Apple and SanDisk Shareholders

Dollar value of NAND is dropping, not unit sales. There is no "slashing of demand from Apple. There is a plunging in pries paid for NAND chips, and a glut resulting from Apple not upgrading their flash-based products as quickly as the NAND industry expeted.

This is a NAND overproduction problem, not an Apple demand problem.

SanDisk Tanks on Weak Guidance Citing Flash Glut and Falling Prices

Great news for AAPL, lousy for SNDK. Plummeting NAND pricing will increase AAPL's margins considerably, leading to a 10c+ benefit to earnings as the pressure increases on producers to switch to DRAM manufacturing, thus creating a glut there too. SNDK is undervalued here, at $38 in the pre-market. At $85, AAPL is way undervalued though. Sadly for SNDK, its loss is AAPL's gain, in every sense.