Rudedog,
Can you please take a look at the post below, which I plagiarized from myself over on Intel, and let me/us know where I'm all wet on Dell's stated reasons for a possibly underweight upcoming quarter? Appreciate it.
Tony
What Diamond said: Are we sure it was Dell that warned and not Intel? We are now down 25 points from the high. This is
kind of a bummer.
What I said: This Dell/DRAM thing has me scratching my head. Dell is blaming the earthquake in Taiwan for the
scarcity, and gapping higher prices for DRAM. However, it seems to me that the vast majority of DRAM
is manufactured in countries that were nowhere near the earthquake. They would be South Korea, with
Samsung #1 in the world, Hyundai, etc.; Japan with NEC, Hitachi, Mitsubishi, Fujitsu etc.; USA with
IBM and little old Micron Tech. So how can Dell or anybody blame the high price and scarcity of DRAM
on the earthquake? Sure, some DRAM is made in Taiwan, but it's in the low to mid-teens percentages
according to this snippet from this Yahoo article:
ca.dailynews.yahoo.com.
An earthquake in Taiwan last month disrupted production at factories that produce between 12
percent and 15
percent of the world's random access memory, or RAM, chips.
I also find it hard to believe that 12-15% of DRAM is made in Taiwan (I know there are many different
kinds of DRAM, hard to quantify), what with all the powerhouses I listed above. Name one Taiwan
DRAM powerhouse.
Just one more example of how "squirrelly" the DRAM market is, between the gluts and the undersupplies.
Is it ever "normal"?
Tony
p.s. Thank lucky stars, at least for overnight tonight, for Microsoft's sandbagging, or crying poormouth, or
whatever you call it. |
