World’s fastest SDHC doesn’t guarantee a fast recovery for SanDisk
SanDisk Corporation (SNDK), recently introduced the world’d fastest 32-gigabyte (GB) SDHC card in the market. The card has up to 30 megabytes per second (MB/s) read and write speeds and offers performance, surpassing any product available in the market. The product is equipped with massive storage capacity, helping digital photography enthusiasts utilize the advanced features of today’s DSLR cameras.
The digital SLR camera market is growing and companies like Canon (CAJ), Nikon and Olympus are launching up with new models on regular basis. Previously used by professional photographers, these digital SLR’s have become a favorite of amateur photographers as well.
We expect this 32-gigabyte (GB) SDHC card, to generate significant demand for the company from Digital SLR camera manufacturers. This apart, SanDisk Extreme SDHC cards guarantee functionality at temperatures ranging from minus 13 F (minus 25 C) to 185 F (85 C).
Further, the SDHC cards are fully compatible with any camera, card reader or other device that supports SDHC cards. We believe high storage capacity, speed, durability, efficiency and compatibility are the USP’s of this product, which will create good business opportunities for the company going forward.
But if we take a macro view on the company, the SDHC card just occupies a small portion of the company’s product portfolio and does not significantly influence the entire business revival. We expect retail sales to be weak coupled with not so promising OEM demand due to the economic turmoil.
Also, severe pricing pressure and weak demand are expected during the second half on 2009. SanDisk will derive benefits from this product in the long run, although we are a tad apprehensive about the short run demand rebound. We continue with a Sell rating on the company.
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