M-Systems' DiskOnKey Releases Results of First End-User Survey of the USB Flash Drive Market29 April 2005
M-Systems (Nasdaq:FLSH), the leading developer of USB flash drives, announced today the results of an independent survey on the usage of USB flash drives. The survey, commissioned by M-Systems and executed by Hall and Partners, a renowned research agency, is the first to reach out to the end-user and determine how they are using these versatile devices.
The study revealed that 80 percent of respondents are using their USB flash drive for personal use, mainly for storing multimedia files such as music (62%), graphics (52%) and video (46%). Sixty-four percent of respondents who use USB flash drives for work stated that they use the device for transferring work-related files between work and home.
"We were pleased to hear that 66 percent use these devices to exchange files with friends and family," said Blaine Phelps, worldwide marketing director of M-Systems' DiskOnKey. "In fact, 40 percent said that they either cannot live without the devices or that they were dependent on them, making it clear that USB flash drives are becoming an integral part of the users' everyday life."
When asked about future use, the respondents said they are looking for more than simple storage. They indicated a strong desire for applications that will offer customized portable desktops, email access, password management, corporate authentication, access to financial information, web accounts, textbooks, school information (report cards, etc.), health care files and video games.
"This survey proves that additional applications are in demand," said Phelps. "M-Systems, in conjunction with SanDisk, created U3(TM), a newly formed company that is focused on expanding USB drive technology beyond storage. This investment shows our commitment to making these applications come to life."
The top two incentives for purchasing a USB flash drive are its memory capacity (61%) and its price (60%). In fact, consumers are willing to pay more for extra capacity and for products that are faster and easier to use. Sixty-seven percent stated that USB flash drives are a good value for the money, further showing that USB flash drives are becoming more widely accepted.
"This survey shows that the functionality of USB flash drives is highly valued by the average consumer, particularly its ease of use," said Phelps. "We noticed that online purchases more than double when consumers buy a second device emphasizing the familiarity and comfort consumers have when using USB flash drives."
Word-of-mouth (41%), such as recommendations from friends, is one of the primary drivers towards purchase. Widespread word-of-mouth is perhaps the best sign that the general public accepts a product. Judging from this perception, the USB flash drive market is poised for continued growth as more complex applications make their way onto these devices.
Survey Methodology
Hall & Partners conducted the survey online in February of 2005. The sample size included 415 respondents who were living in the United States, were between the ages of 15-55 and either regularly used a PC or a Mac with a USB flash drive device or were considering buying a device in the next six months. In order to ensure the population represented the entire category and was not biased, the users were not informed as to who commissioned the survey and were not asked which brand of USB flash drive they were using. Therefore the respondents may or may not be owners of an M-Systems' DiskOnKey.
About M-Systems' DiskOnKey
The DiskOnKey is a unique, patented solution offering partners the unprecedented flexibility and ease-of-use to implement M-Systems' expertise into their existing product line or to design their own form factor, using the Company's internal architecture. The award-winning DiskOnKey product line offers consumers trusted quality, reliability, extreme security and the industry's leading product warranty.
For product information, enhancements, upgrades and general information on the USB flash drive category, please visit www.diskonkey.com.
About M-Systems
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey(R) product, and the multimedia mobile handset market with its Mobile DiskOnChip(R) products. For more information, please contact M-Systems at www.M-Systems.com.
All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.
NOTE: This press release includes forward-looking statements as defined in the private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties which may cause actual results to vary significantly. These risks include, but are not limited to, risks related to: the effect of global economic conditions in general and conditions in the Company's industry and target markets in particular, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints including dependence on flash component suppliers; changes in the Company's and its customers' inventory levels and in inventory valuations; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on the Company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the Company's and its customers' products; and other risk factors detailed in the Company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to the company as of the date hereof. The Company assumes no obligation to update the Information in this release and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.
Contacts
Editorial Contacts for M-Systems:
O'Leary and Partners Public Relations
Kristine Hernandez, 949-224-4036
khernandez@olearypr.com
Angie Tucker, 949-224-4035
atucker@olearypr.com
or
Investor Contacts for M-Systems:
KCSA Worldwide
Jeff Corbin, 212-896-1214
jcorbin@kcsa.com
Lee Roth, 212-896-1209
lroth@kcsa.com
or
Harvard Public Relations (Europe)
Stephen Gaynor/Lindsey Brookes, +44 (0) 20-8564-6323
stephen.gaynor@harvard.co.uk
lindsey.brookes@harvard.co.uk
Source: Business Wire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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