chartguy

SanDisk: Flash Sales 'Soft' in April at Retail

Why is it so difficult to understand that price pressures for SNDK translate to better margins for company's purchasing flash memory? In fact, prices have fallen so precipitously that companies like AAPL can increase unit purchases by 50% and still expect to pay less than in 2007. I don't expect SNDK to realize any significant appreciation until consumption of flash memory increases through broader adoption in phones and computers. Said differently, I am very reluctant to use SNDK as a proxy to determine AAPLs prospects for 2008 as it appears that AAPL is on track to exceed expectations with its flash based products (iPhone, iTouch, MBA). Too bad for SNDK that AAPL alone can't rescue it.