Thanks for the notes, still haven't listened to CS interview or read the transcript, have looked at the Net for only a few minutes the last few days. But here is an excerpt from the transcript at SA via a post on MU from another investment site where the poster posts DXI prices every day--
FYI, from CEO Duncan's interview with CS. At some point, I may stop posting the spot prices.
John Pitzer
One other things I thought you guys did a good job at the Analysts Day in Hong Kong this summer was really highlighting the diversity of applications within the DRAM market today versus 5-10 years ago and if you look at sort of what the PC dependency was today or a five years ago versus now it is down significantly, I am kind of curious every morning I wake up at 4:30 in the morning to do one thing, check spot pricing over night, at what point can you --
Mark Durcan
When you are going to break that habit, you are living much longer.
John Pitzer
At what point is this no longer become a fulfillment business and starts to become backlog business and you started to see that movement towards a true backlog driven business where you have a lot more visibility at the beginning of a quarter through the end of the quarter around pricing trends with your customers.
Mark Durcan
Yes. I think it is already happening. And I think it will continue to happen. I am a believer that this market changed dramatically couple of years ago. But it takes a while for really to think and for you to stop checking stock prices every morning and for the customers to realize that it really is a different market. They need to have a different perspective in terms of how they think about their memory procurement and the strategic nature of the relationship et cetera, et cetera. I think that's happening. And I think we've made good progress this year. And I think we will continue to make progress in the years ahead in terms of how the customers approach at least Micron from a supply perspective and the way they think about that relationship. The market as I said particularly in the DRAM space I think it is going to be very, very positive for a number of years. That doesn't mean however there is not going to be little ripple as we go through seasonal slow periods and as we do conversion from DDR3 to DDR4 or people move capacity to rebalance between mobile and PC or whatever, there can be little ripples in the business. And at the moment as that happen, people still are looking out for the panic button. But I think the long-term dynamics are in all place and I am very, very positive about it. |
