Insook, How you been doing. I've found wives, but they are somebody else's. <vbg>
The OEMs have low inventories because they know that the DRAM makers are producing many more chips than they can sell. The question is, who blinks first? Mu has built inventories by another third since the June quarter, when they said they were too high. The same can be said of Samsung. I am not sure about the other players. But, with 80 million chips in inventory, there is no shortage. So, can MU pretend there is a shortage and get the OEMs to pay higher than market price? Right now they are, but, someday, they have to either try to peddle the inventory or write it off. And the production of it is killing cash, even if it is not subtracting from nominal earnings. Yet.
Best,
MB |
