SanDisk 2014 Annual Report Download - page 75

Our Strategy
In order to remain an industry-leading supplier of NAND flash storage solutions and to develop large
scale markets for NAND flash-based storage products, we strive to:
•Create industry-leading storage solutions by leveraging our innovative technology. We have a deep
understanding of the technology used in the design, manufacture and operation of NAND flash and
have invented many of the key NAND flash technologies and solutions. We continue to develop
advanced generations of NAND flash technology with increased memory density and capacity
including 2-dimensional and 3-dimensional NAND, or 2D NAND and 3D NAND, respectively. In
parallel with our NAND scaling efforts, we are also investing in future alternative technologies,
including 3-dimensional resistive RAM, or 3D ReRAM. In addition, we continue to invest in
complementary technologies, such as controllers, firmware and software that manage the NAND
flash and enable us to provide differentiated solutions for our customers.
•Strengthen position in high-value solutions. We have been increasing the mix of our sales from
embedded and SSD solutions as we grow our share in the embedded and SSD markets. These
solutions generally provide the opportunity for greater differentiation and a higher price per
gigabyte. We strive to continue strong growth in both the SSD and embedded markets over the next
several years.
•Maintain cost leadership, leverage scale and drive operational excellence. We believe the markets for
flash storage are generally price elastic, meaning that a decrease in the price per gigabyte results in
increased demand for higher capacities and the emergence of new applications for flash storage. We
strive to continuously reduce the cost of NAND flash memory to grow existing and future markets,
supply a diverse set of customers and channels, and support the profitable growth of our business.
We have invested heavily in a vertically integrated business model, which includes our investments
in high volume, state-of-the-art NAND flash manufacturing facilities in Japan through our ventures
with Toshiba and our in-house assembly and test facilities in Shanghai, China in order to reduce the
costs of producing our products, increase our ability to control the quality of our products and
provide efficient delivery to our customers. We will continue to leverage our vertical integration and
invest in additional manufacturing capacity in order to produce leading-edge, high-quality products
that our customers can count on to store and reliably access their data.
•Drive profitable growth across diversified markets, customers and channels. We create new markets for
NAND flash memory through our design and development of NAND flash solutions that cater to
specific requirements in the end markets we serve. We continue to expand our retail customer base
to new geographic regions and outlets, and we continue to achieve design wins from our current and
new original equipment manufacturer, or OEM, customers by offering leading-edge NAND flash
storage solutions. We are also expanding our reach into small and medium business customers
through distributors, value added resellers and system integrators. In addition, we directly engage
with enterprise and hyperscale customers to better understand and develop scalable enterprise
storage solutions.
Our Solutions
Our products are sold in a wide variety of form factors, capacities and performance levels, and include
the following:
•Removable Cards. Our removable cards are used in a variety of applications and consumer devices.
Our CompactFlash and Secure Digital, or SD, removable cards are primarily used in digital
cameras and camcorders. Our ultra-small microSD removable cards are designed primarily for
use in mobile products such as smartphones, tablets and eReaders. We offer removable cards with
increasing levels of performance and reliability through our SanDisk Ultra, SanDisk Extreme and
SanDisk Extreme PRO product lines.
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Annual Report