Flash memory storage provider SanDisk Corp. (SNDK) recently unveiled the Ultra microSDXC UHS-I memory card, thereby enhancing its solid state drive (SSD) portfolio. The newly-launched card that will be available worldwide is expected to improve the computing experience (especially on mobile devices).
The Ultra microSDXC UHS-I card is an ideal solution for Android smartphones and tablets enhancing overall drive capacity, reliability and performance. It will enable users to capture songs, photos, videos and documents without worrying about storage limitations. SanDisk believes that the drive is capable of delivering a device with high speed, quickly responding systems and energy efficient features.
The 128GB microSD is an exceptionally fast and cost-effective storage solution. It offers up to 30MB/sec sequential read speeds. Additionally, SanDisk’ latest Memory Zone app is also available on the Google (GOOG) Play store, from where it can be bought for storage connectivity between the smartphone, memory card and the cloud storage space. This new version also enables users to upload photos on Picasa and Facebook (FB), leading to an improved user experience.
The microSD is available in 8 GB to 128 GB capacities for $29.99 to $199.99. The 128GB SanDisk Ultra microSDXC can also be bought online through Amazon.com (AMZN) and BestBuy.com.
In a separate development, SanDisk introduced an enhanced version of iNAND Extreme embedded flash drive (EFD). The new iNAND Extreme’s 64GB storage space and high read/write speed will complement smartphones and other mobile computing devices. The iNAND device enables faster application loading, speedy data synchronization in the cloud and higher streaming capabilities for an enhanced user experience.
With these new launches, we expect SanDisk to strengthen its market position. As per technology research firm Gartner, the total SSD market is poised for considerable growth, with revenue projected to more than double to reach $19.4 billion in 2014, up from $9.2 billion in 2012. Thus SNDK has the potential to secure 10-12% revenue share by 2014, up from 3-4% share at the end of 2012.
The company is seeing increasing demand for its SSD products. This can be inferred from its fourth quarter 2013 results, which surpassed the Zacks Consensus Estimate. During the quarter, increased sales of SSDs boosted the company’s revenues from commercial and retail channels.
We believe that the acquisition of SMART Storage Systems is expected to expand SanDisk’s offering in the Enterprise SSD segment. However, lackluster PC sales, European issues, competition from Micron Technology Inc. and currency fluctuations could hurt fundamentals to some extent.
Currently, SanDisk carries a Zacks Rank #3 (Hold).
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