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

To: phbolton who wrote (46949)	7/6/1999 12:24:00 PM
From: Skeeter Bug	Respond to of 53903

samsung will, and is, selling at a loss. if samsung isn't selling at a loss now then micron is in a world of hurt. $5.41? not on this planet.

To: phbolton who wrote (46949)	7/6/1999 4:10:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

ph, interesting quote. Micron's "basic strategy in the DRAM market is to eliminate rival manufacturers, so it is very likely that the company will continue to compete on price until the weaker competitors have been weeded out," Mimura said. How ironic that the Commerce Department's anti-dumping provisions are being used in this industry to perpetuate the very strategy they were in part originally formulated to counter. I wonder if any of their inventory overhang could have possibly had anything to do with them not being as aggressive in end-of-the quarter inventory liquidation in certain Asian markets. Taiwain, for example. Leading the pack is U.S. manufacturer Micron Technology Inc, which expects the unit production cost of a 64-Mbit PC100 DRAM to fall to about $3.50 by the end of the year... Definitely possible. If you assume unit cost was somewhere around 5.30 3Q99 (?) and assume 13% sequential cost reduction on the .18u transition - fine. What's their target gross margin for the part? What are they doing to achieve this? Is that even how they plan? Or is their planning much less nuanced, boiling down to "eliminate rival manufacturers...until the weaker competitors have been weeded out." Good trading, Tom

To: phbolton who wrote (46949)	7/7/1999 9:17:00 AM
From: Patrick Hennessey	Respond to of 53903

ph, "Micron may continue the price cutting and sell at a loss, but Samsung will not", sounds to me like Samsung's starting to cry uncle! I'm surprised at their response to Micron tightning the screws on the industry. This sounds to me like they are having trouble competing and trying to get a cease fire with the rest of the industry. Also if this is true then it appears that pricing has bottomed and the next moves in pricing will probably be up. Back to school, and Christmas will also be a big help. Pat