Sandisk (SNDK) comments on product gross margin guidance

They were asked whether the product gm guidance was because of cost or pricing. Co saying they're the low cost producer and its not that. It's pricing by competitors. Industry cannot continue to bring pricing down by 60% a year because costs can't go down that quickly... even if you're perfect. Expect 50-55% cost reduction and expect pricing to decline by 50-55%. If we're off, will have an impact either way.