Imran, Even without a scorched earth policy, MU cannot come close to analyst estimates this quarter without some pricing miracle that allows them to dump inventory at a profit. However, they are running out of days during which this miracle can appear.
The simple fact is, Micron, through hard work in lowering costs, good luck in having the Koreans give up market share without a fight (temporarily, at best), floating debt to survive, and brilliant use of Anti-dumping scams and analyst gullibility/stupidity/greed, has kept its chin slightly above the water. However, these band-aid solutions don't even approach the cos. long term strategic problems.
Only a boom in chips can save them over the long haul, and I don't see one looming with weaker pc sales growth and a commodity/obsolete chip portfolio. MB |
