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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Technology Investor who wrote (46580)	6/23/1999 12:24:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

tech, mu's asp 2 qs ago was $9.50. they earned 11 cents. last q (the one about to report) saw that drop from a little less than $9.50 to around $5.00. oh, and that drop occurred in spite of mu holding back 3 extra weeks of inventory. we'll see the results of this tonight. this q, the one fab is speaking of, had asps start out at $5 and they've already dropped to the low $4s. we know they have 3 weeks of inventory they need to incentivize to get rid of or else nobody wants it. i don't think care bears w/ each order will do the trick, either. lower prices to come. whether next q is the worst in company history remains to be seen. however, the fact that there is a disaster waiting in the wings is obvious - no agenda required.

To: Technology Investor who wrote (46580)	6/23/1999 12:40:00 PM
From: Fabeyes	Respond to of 53903

The price of what the 64 Meg and the 128 or selling for is enough. According to Micron's own numbers, stated in this site last month, their price of manufacturing is close to $6.00 each. With the ASP's being ~ 3 it is 3-6=-3. I will not say there are no personal issues, with the truth of what is going on there being #1. In reality the "fully loaded" cost should be closer to 7.5 or 8.00 so that will increase the LOSS for next qtr. There is also a question, supported by statements from Kipp, that they have a large inventory. If they are starting to unload 40 million parts then that will also make the ASP's decline. I did not think we would see a 128 Meg for <$95 THIS YEAR let alone in the 60's in June. Having been at MU during the 1985 period I can only relate history to you as Joe Parkinson stood at a podium and announced a 50% layoff due to low prices. I do not see a layoff coming, it maybe all or nothing; MU is still hiring people. What is feeling about the prices, cost per part etc.?