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

To: phbolton who wrote (49403)	10/19/1999 11:11:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

what is dram selling for now?

To: phbolton who wrote (49403)	10/20/1999 12:23:00 AM
From: Bharat H. Barai	Read Replies (3) \| Respond to of 53903

DELL computer has been accustomed to getting DRAM chips for peanuts. How long can Micron and Samsung keep on taking the losses and provide DRAM chips at throw away prices. I am amused at DELL's claim that DRAM price increase is short term phenomena and situation will return back to "normal". My sources in Taiwan tell me that DRAM prices are holding firm around $ 10-12 for OEMs and $ 14 for spot purchases. As usual Micron stock price will go yo yo. While Box makers can reduce DRAM content to keep box prices same, in most cases that is not feasible. You cannot run WIN 98 for less that 32 MB. Those who want better performance and are knowledgable, will pay extra $ 100 and get 128 MB. Next Disk drive makers will have to go bankrupt or stop supplying Hard Disk drives for nothing to box makers. Either way, days of cheap PCs are over. Remember Peoples Airlines, giving flights for peanuts prices? How long can such freebies continue? In last 2 years, during Asian crisis, manufacturers gave away goods at loss. How are they going to build additional capacity to continue to throw away goods for peanuts? Number of new fabs construction is way down. Law of supply and demand will catch up, even with Mr. DELL. Fasten your seat belts and be prepared to pay reasonable prices for PC components,even if it means reduced margins for DELL or higher prices for consumers. No more freebies !!