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

To: Skeeter Bug who wrote (49404)	10/20/1999 12:37:00 AM
From: Carl R.	Read Replies (2) \| Respond to of 53903

Of course the box makers will try to skimp on memory to save a few bucks. No surprise there. The mystery will be whether or not consumers will request it. At DELL especially, people order custom versions, and they specifically make a choice as to how much memory is in the box. It is also true of course that consumers are elastic in their demand for memory. No doubt about it, at higher prices, less demand will exist for memory. Therefore a new supply-demand balance will eventually be reached. There is little doubt that with no new fabs under construction, the rate of increase of demand is currently higher than the rate of increase in supply. Thus while memory prices will no doubt fall from here, the rate at which prices fall is likely to be much more moderate this time around, allowing MU to remain profitable for the next couple years until new fabs start coming on line. What could disrupt this? The only thing I can think of would be a slowdown in communication equipment sales which would allow fabs producing high-profit communication chips to go back to DRAM. With no new fabs under construction, demand for fab capacity is likely to remain tight. And where will MU stock go? Ask HAL. <VBG> Carl