If you'll pardon the metaphor, flash memory maker SanDisk
The latest ill was a pretty hefty price war that has decimated margins at competitor Lexar Media
SanDisk's revenues rocketed up 85% to $433 million, and earnings grew 46% to $0.38 per share. But the best news for shareholders had to be the 3% gain in gross product margins. It proved that management's aggressive pricing strategy wasn't a self-defeating effort to win the battle but lose the war.
And get this, that doesn't include the inputs from licensing the company's lucrative intellectual properties to a bevy of other technology firms, including Sony
In post-market trading yesterday, SanDisk popped 20%, and Lexar jumped 10%, ostensibly on SanDisk's good news. That makes very little sense. To judge by SanDisk's success and its gains in market share, Lexar will suffer. Despite the recently announcedEastman Kodak
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- Take a look at Lexar's big lumps.
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