The trashing of Micron and WDC over the past many months is hard to understand. The reasoning of those doing the trashing IMO is very superfluous. Demand is usually brought up as going down, but not really, because bit sales are always up, and expected to continue to rise which stands to reason for all the old and new uses for memory that continue to unfold.
In general, the selling price of DRAM and NAND continue to go down. This is to be expected. Prices for components, and electronic product sales will always continue to go down which always brings on more sales opportunities. Does anyone go to Costco, Best Buy, and other suppliers of electronic equipment and expect to pay more for the items they buy? NO way, the prices always come down, and new products are offered on a continuous flow.
The real key in final profitability for the companies involved is being more efficient in producing the increasing bit use than the cost of producing the bits. If that can be done, all parties win including the customers and the companies all make a profit. The analysis of this process is never looked at by the "wizards" who write the assessments of these companies. It is too hard and most, if not all, are unqualified to do this kind of research and reporting.
TrendForce is one of the worst IMO. The negativity is always there, whether or not, the situation warrants it. As usual the future earnings reporting will tell the tale, but in the meantime the negativity is taking its toll. |
