dg, sure, i'm a little concerned about what korea will do short term. after all, every penny that mu has made in the last 18 months is due to them holding back inventory in the same manner as currently suggested.
however, they can't make money on less. the fewer the chips they sell the much higher their net cost per chip goes - exponentially. korea is bound to lose money no matter what. japan, taiwan and micron have tons of inventory and would die for the chance to dump it at breakeven or better. they also would love to steal market share from korea.
so, with dram turning any moment (hey, people really believe this), do you give up on the billions of past cap investments, drastically reduce your market share, bail out your competition that recently bragged about doubling output and then filed charges saying you were iresponsible with capacity expansion or do you try and hold on to market share and wait out this short period of time until demand catches up to supply (which is always 6 months out ;-)?
press releases are cheap, easy and they make people feel good. they may also cause oems to increase orders.
keep in mind that any increase in dram price causes boxmakers to lose out on profit or pc prices to increase. a pc price increase, imho. would kill demand growth in its tracks.
good luck..., |
