SanDisk Unveils USB 3.0 Flash Drive for Faster Data Transfer - Analyst Blog

By
A A A

Flash memory storage vendor SanDisk Corp. ( SNDK ) recently unveiled its new USB 3.0 Flash Drive for PCs and other devices. The new drive comes in a smaller form factor and facilitates faster data transfer than its predecessor - USB 2.0 drives. The SanDisk Ultra Fit USB 3.0 Flash Drive is available in capacities of 16GB, 32GB and 64GB for $39.99, $69.99 and $109.99, respectively.

Also, SanDisk is making considerable efforts to push its client and enterprise solid state drive (SSD) products. This is an area with better growth prospects and a more stable pricing environment.

Enterprise class SSDs are faster and more energy efficient than traditional hard drives, which is the main factor driving the demand. They also occupy less space and are therefore more suitable for mobile computing devices.

SanDisk expects enterprise SSD total addressable market (TAM) to reach $8.0 billion in 2017 while the total addressable market for the enterprise SSD, Client SSD, embedded and removable SSD combined is expected to be $41.0 billion. Moreover, the company expects to generate approximately 40% of its revenues from SSD in 2017, up from 19% in 2013.

It is worth noting that SSD revenues jumped 97% on a year-over-year basis and comprised 29% of total revenue in the last reported quarter (second-quarter 2014), which is indicative of the company's long-term prospects.

Moreover, the strategic acquisitions of Fusion-io Inc. and SMART Storage Systems are expected to expand SanDisk's offerings in the Enterprise SSD segment. Nonetheless, declining price per gigabyte, primarily due to unfavorable product mix, could impact the company's results. 

Going forward, lackluster PC sales, competition from Micron Technology Inc. ( MU ), Western Digital ( WDC ) and currency fluctuations remain the headwinds. However, we remain positive on management's commentary of a turnaround in the coming quarters and strong secular demand for its storage products.

It is also worth mentioning that Apple Inc. ( AAPL ) remains a major customer of SanDisk. Hence, we believe that with price and cost benefits as well as long-term NAND supply agreements with Apple will help SanDisk to outperform the NAND market.

Currently, SanDisk has a Zacks Rank #3 (Hold).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WESTERN DIGITAL (WDC): Free Stock Analysis Report

SANDISK CORP (SNDK): Free Stock Analysis Report

APPLE INC (AAPL): Free Stock Analysis Report

MICRON TECH (MU): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: SSD , TAM , WDC , SNDK , AAPL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stuck
Stuck                               
Yoga Surfer
Yoga Surfer                         

Stocks

Referenced

Most Active by Volume

89,851,277
  • $17.05 ▲ 0.12%
61,694,953
  • $39.05 ▲ 1.03%
61,622,467
  • $102.64 ▲ 1.56%
56,476,509
  • $3.48 ▼ 1.14%
49,282,352
  • $5.31 ▲ 3.91%
37,301,083
  • $87.17 ▼ 3.03%
36,192,897
  • $78.29 ▲ 1.94%
33,401,171
  • $38.83 ▼ 1.89%
As of 9/23/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com