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

To: Steve Robinett who wrote (48005)	9/6/1999 3:00:00 PM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Memory chip producers tightening belts despite booming market Korean memory chip manufacturers are expected to rake in huge profits this year, but there appears no relaxation in their belt-tightening drive that started last year as part of restructuring efforts. Company officials said most of the profits will be either reinvested, kept as retained earnings or used to improve financial structures, with only a small fraction to be used to improve employees' welfare. This frugality is in sharp contrast with the attitude in 1995 when they earned record profits amid an unprecedented memory chip market boom. At that time, they allocated a large chunk of profits in the form of allowances to employees. For example, Samsung Electronics, which garnered 2.5 trillion won in net profit in 1995, provided employees with allowances for foreign language training, golf lessons and medical checkups for their family members. But the boom was short-lived and was followed immediately by a long and deep recession. Then in late 1997, the foreign exchange crisis hit the nation, sending chip manufacturers scrambling to cut not just fat but also some bone. Samsung lowered workers' welfare to the levels of the 1980s and cut the payroll by 15,000 workers. "They are determined not to repeat the same folly," said an industry watcher. "The bitter memories of 1996 and thereafter are still vivid in their mind." A Samsung official said the company has no intention of stopping its thrifty stance simply because the chip market has switched to a boom. "The company will not provide gifts to employees on the occasion of Chusok holiday. It doesn't have any plan to offer performance bonuses, either," he said. Samsung plans to reinvest most of its profits in R&D and facility renovation in its main business fields - semiconductors, LCDs, telecom equipment and home electronics. It has expanded its investment plan for this year from 2.5 trillion won to 3.5 trillion won. Hyundai Electronics Industries and Hyundai MicroElectronics, formerly LG Semicon, registered losses in the first half of the year because of work stoppages related to their planned merger. For the whole of this year, they are expected to register profits, small as they may be. "Any profit to be made this year will be reinvested or used to improve the balance sheets. No bonus is planned to boost employee morale," an official said. Updated: 09/07/1999

To: Steve Robinett who wrote (48005)	9/6/1999 3:34:00 PM
From: SeaViewer	Read Replies (2) \| Respond to of 53903

I saw an eMachine 366Mhz in the paper selling (after various rebates from online service and manufacturer) for $74. eMachine gives away $400 rebate if you sign with an internet provider. That machine costs $399, so you can get $1 credit. emachinesinc.com I bought a P-II 300 last year for twice that money. And it can do almost everything. No need for those 400 or 500 MHz. Jeff

To: Steve Robinett who wrote (48005)	9/6/1999 7:11:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

>>I'd guess the $500 PC's days are numbered--it's going to get way cheaper.<< that isn't a guess. it is a well reason theory based upon sound economic principles. i'm not so sure the net computer will catch on. maybe, haven't thought about it much. i do think that linux may begin supporting the lower cost pcs, though. the ops system is now 20%+ of the entire cost of purchase - and growing. that won't last, imho. i understand corel (or somebody similar) is going to offer a linux based office suite for free to home users. i'm not sure what to make of the current spot pricing. i don't think i;ve ever seen spot ($10) so far away from contract ($6 or so). convoluting the matter is the fact that micron had the mutherload of inventory not too long ago that they had to discount it to lose it. i suspect that the boxmakers are building gobs of inventory anticipating HUGE sales. Coupling this with micron, and maybe a few other big boys, making a deal to discount dram to the boxmakers and removing millions of units from the spot market and making them contract units, on could extrapolate that this this factor is what has caused the severe disconnect between spot and contract. of course, the bulls just extrapolate out forever and get absurdities like 60%+ higher prices in a higher supply / lower demand environment. then again, nobody ever accused them of being rocket scientists ;-)