Zeev's Turnips Patch-No Politics (ZEEV)

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09:12 SNDK note

SNDK SanDisk: feature phones to drive growth - JP Morgan (22.73 )

JP Morgan expects the feature phone (photos, video, MP3, PIM) mkt to grow at a similar pace to the more narrowly-defined camera cellphone mkt, at about 38% CAGR through 2008 from about 186 mln units in 2004. Firm believes this should drive growth of both embedded NAND Flash and after-mkt card sales by a higher percentage as the capacity requirements and attach rates increase. According to them, citing design-ins, SanDisk expects over 200 mobile phones with card slots to be introduced by mid 2005, with the largest share using mini-SD, Transflash and SD formats, all of which play to SanDisk's relative advantage. Firm believes this could provide further upside to their ests, which stand at the high end of consensus.