SanDisk 2009 Annual Report Download - page 61

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We sell our products globally to retail and OEM customers. We continue to expand our retail customer base
to new geographic regions as well as to outlets such as mobile storefronts, supermarkets and drug stores. We also
sell directly and through distributors to OEM customers. These OEM customers either bundle or embed our
memory solutions with products such as mobile phones, digital cameras, gaming devices, computers and
navigation devices, or resell our memory solutions under their brand into retail channels. This strategy allows us
to leverage the market position, geographic footprint and brand strength of our customers to achieve broad
market penetration for our products.
Our Products
Our products are sold in a wide variety of form factors and include the following:
•Removable Cards. Our removable data storage solutions are available in a variety of consumer form
factors. For example, our ultra-small microSD removable cards, available in capacities up to
16 gigabytes, are designed for use in mobile phones. Our CompactFlash removable cards, available in
capacities up to 64 gigabytes, are well-suited for a range of consumer applications, including digital
cameras. Our professional products include the SanDisk Ultra®and SanDisk Extreme®product lines
which are designed for additional performance and reliability.
•Embedded Products. Our embedded products include our iNAND™ embedded flash product line, with
capacities up to 64 gigabytes, which is designed to respond to the increasing demand for embedded
storage for mobile phones and other portable devices. We also offer high-capacity SSDs targeted for
the personal computing and server markets in capacities up to 64 gigabytes.
•USB Drives. Our Cruzer®line of USB Flash Drives, or UFDs, are used in the computing and consumer
markets, are available in capacities up to 64 gigabytes, are highly-reliable and are designed for high-
performance. Our Cruzer products provide the user with the ability to carry files and application
software on a portable USB drive. Our Professional and Enterprise line of UFDs are geared towards the
corporate user and are specifically designed to support secure and authorized access to corporate
information.
•Digital Media Players. Sansa®is our branded line of flash-based digital media players for the digital
audio and video player market. Many of our Sansa models offer a removable card slot for storage
capacity expansion and easy transportability of content between devices. Features within our Sansa line
of products include FM radio, voice recording and support for a variety of audio and video download
and subscription services. Sansa media players are available in capacities up to 16 gigabytes. We also
sell slotMusic™ and slotRadio™ products that greatly simplify music content availability for
consumers.
•Wafers and Components. In addition to finished products listed above, from time-to-time, we also sell
raw memory wafers and memory components in packaged format.
Our Primary End Markets
Our products are sold to three primary large end markets:
•Mobile Phones. We provide embedded and removable storage for mobile phones. We are a leading
supplier of the microSD and Memory Stick®Micro product lines of removable storage cards used in
mobile phones. Multimedia features in mobile phones, such as camera functionality, audio/MP3,
games, video and internet access, have been gaining in popularity. In addition, there has been
increasing usage of native and downloaded applications in mobile phones. The usage of multimedia
features and applications are driving demand for additional NAND flash memory storage in mobile
phones.
•Consumer. We provide flash storage products to multiple consumer markets, including imaging,
gaming, audio/video and global positioning system, or GPS. Flash storage cards are used as the film for
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