Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 318.61

-3.0%

3:59 PM EST

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To: Lucinos who wrote (8217)	9/26/1997 3:38:00 PM
From: davesd	of 70976

Lucinow...the problem is that there is so much capacity already in place that they cannot sell all the DRAM that they can make....why would a business want to expand when they can't sell all they can already produce..and what they are selling is being sold at breakeven or a loss. The reason DRAM prices are going down is that there is too much supply and not enough demand and this is the busiest season for DRAM sales as PC makers get ready for XMAS.....if you were ran a business and your warehouse was full of "widgets" that you cannot sell at a profit...would you hire more labor and add capacity to your business?? dave

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