Flash memory storage solution provider SanDisk Corp. ( SNDK ) recently unveiled two solid state drive (SSD) suites that are expected to improve the computing and mobile computing experience for both consumers and original equipment manufacturers (OEMs). The newly-launched Ultra Plus SSD and X110 SSD have been made available worldwide.
The Ultra Plus SSD will target consumers intending to accelerate the processing speed of their notebooks/desktops externally. The SSD is available in 64 gigabyte (GB), 128 GB and 256 GB capacities for $74.99, $109.99 and $219.99, respectively. The products can also be availed online through Amazon.com ( AMZN ), Microcenter.com and Newegg.com.
The X110 SSD is intended for OEMs that will be able to embed it into their upcoming notebook/desktop lineups. SanDisk believes that the drive is capable of delivering a device with utmost speed, quickly responding systems, and energy efficient features.
In a separate development, SanDisk announced that ASUSTEK, an Asian PC manufacturer, will be using U100 SSD in its Transformer Book (notebook with detachable tablet) for faster storage. Earlier, ASUS used this SSD in its UX Series ultra-thin notebook.
The company is seeing increasing demand for its SSD products. This can be inferred from its third quarter 2012 results, which surpassed the Zacks Consensus Estimate. During the quarter, increased sales of SSDs boosted the company's OEM revenues.
The company is also confident about strong demand from the Enterprise sector. It is also planning to introduce next-generation controllers soon to capitalize on the growing enterprise storage demand. It is also expecting a surge in client SSD demand. Taking all these factors into consideration, the company expects its total SSD contribution to be 10.0% of total revenue in 2012.
However, lackluster PC sales, European issues, competition from Micron Technology Inc. ( MU ) and currency fluctuations are concerns.
Currently, SanDisk has a Zacks Rank #3 (Hold).