Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 254.76

+1.0%

3:25 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: davesd who wrote (14321)	1/8/1998 9:39:00 PM
From: 16yearcycle	Read Replies (1) of 70976

"however, as I stated yesterday...the increase in price is not due to shortage of capacity but more due to reduction in production." DD, I saw you post that before.This is known as " supply and demand". When demand exceeds supply, prices tend to go up. When supplies of a product exceed demand for it, prices drop until the there is no longer an excess of supply. If production is decreased, supply will decrease and the ratio of supply demand will become neutral. You don't have to have a huge increase in demand to eat up supply. DRAM prices will stabilize due to decreased supply, not increased demand.IMO. The "rise" in prices will allow more profits, and more equipment will be purchased. Supply will increase, prices will drop again. This is the most trivial nonsense I can imagine posting, but I want to counter this idea that it will take a massive increase in demand to stabilize prices.Units sold will increase well this year, while the se asia problem will reduce supply.By the end of this year, the dram business will hit a sweet spot. Just mo. Gene

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next