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Will Memory Card Prices Keep Falling?

Techstination feature for Thursday, January 27, 2005

Will memory card prices keep falling? The head of SanDisk says yes. Bloomberg Boot Camp, a report on today's technology. Flash memory cards…which are used in digital cameras and many MP3 music players are a lot more affordable than they used to be. One gigabyte cards can be found for under a hundred dollars. That's less than half what they typically sold for a year ago. How low will they go? We put the question to Eli Harari, CEO of leading memory card maker SanDisk….

"The whole idea with flash memory and consumer electronics is that the markets are very price elastic. And as we are able to bring our costs down through technology migrations and cost reductions we are able to reduce the prices that in turn creates new applications. For example, MP3 players that just a year ago with flash memory, were just too expensive, are finally hitting the right price points below a hundred dollars. And we think that is the way for these industries.." We're seeing some one gigabyte cards under a hundred dollars now, what will they be at the end of this year? "I can tell you that in three years, those one gigabyte cards will be very close to ten bucks. And at that point, you can just imagine there will be very much more pervasive usage of flash memory."

There will be gigabytes of memory in cell phones for instance…for storing photos, videos and music…and a wide variety of applications. Bloomberg Boot Camp, I'm Fred Fishkin.