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Technology Stocks : Micron Only Forum
MU 201.37-10.9%3:59 PM EST
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To: phbolton who wrote (46949)7/6/1999 4:10:00 PM
From: Thomas G. Busillo  Read Replies (1) of 53903
 
ph, interesting quote. Micron's "basic strategy in the DRAM market is to eliminate rival manufacturers, so it is very likely that the company will continue to compete on price until the weaker competitors have been weeded out," Mimura said.

How ironic that the Commerce Department's anti-dumping provisions are being used in this industry to perpetuate the very strategy they were in part originally formulated to counter.

I wonder if any of their inventory overhang could have possibly had anything to do with them not being as aggressive in end-of-the quarter inventory liquidation in certain Asian markets. Taiwain, for example.

Leading the pack is U.S. manufacturer Micron Technology Inc, which expects the unit production cost of a 64-Mbit PC100 DRAM to fall to about $3.50 by the end of the year...

Definitely possible.

If you assume unit cost was somewhere around 5.30 3Q99 (?) and assume 13% sequential cost reduction on the .18u transition - fine.

What's their target gross margin for the part?
What are they doing to achieve this?

Is that even how they plan?

Or is their planning much less nuanced, boiling down to "eliminate rival manufacturers...until the weaker competitors have been weeded out."

Good trading,

Tom
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