SanDisk Corp. (NASDAQ:SNDK) wants to break the cycle that has long defined its industry.
NAND memory has historically swung between shortages, oversupply and volatile pricing, making it difficult for suppliers and customers alike to plan beyond the next few quarters.
Replacing Quarterly Negotiations With Long-Term Commitments
Historically, NAND suppliers and customers have negotiated pricing and supply on a relatively short-term basis, leaving both sides exposed to sudden shifts in demand and pricing.
SanDisk’s new business models, or NBMs, establish multi-year purchase commitments with strategic customers. This gives the company clearer visibility into future demand while helping customers secure long-term supply for their infrastructure needs.
