SanDisk is the world leader in flash memory which is a type of storage memory used frequently in digital cameras, MP3 players and other digital devices. SanDisk makes money by selling flash memory products to companies that make PCs, digital cameras, music players and mobile phones. Additionally, the company licenses its technology to other flash memory makers like Samsung.
Samsung is one of Apple’s primary suppliers of flash memory for the iPhone and iPod. SanDisk collects royalties from Samsung for the flash memory that goes into iPhones and iPod, and hence directly benefits from Apple’s success in iPhones and iPods.
SanDisk’s Flash Licenses and Royalties business accounts for 15% of the $20.49 per share Trefis price estimate for SanDisk. Within SanDisk’s content on our platform, you can further explore how changes in Growth in License & Royalty Revenue due to the success of Apple’s iPhone and iPod could impact SanDisk’s stock.
