"16 GB is not going to be the sweet spot for the MP3 player market by the end of the year. It's expensive and most of the market is between $50 and $150 and you can't do that with a 16 GB player. With the exception of course of the iPod! For Sandisk the sweet spot is under $150", said Eli Harari, CEO of Sandisk.

Harari also confirmed that Sandisk looks beyond MP3 players that compete with Apple's iPod to extend flash-based gadget line:

We just introduced Sansa shake which is for kids and sold at ToysRUs and Target for $39.95. It doesn't compete with the iPod or anything else in the market. It's a kid MP3 player. We've got to do more of that. Like the Sansa Connect which is a Wi-Fi device, there will be other innovative products. USBTV is a completely new product that is definitely not an MP3 player which takes your video from your PC to the TV and let you have a full show.