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

To: pat pasquale who wrote (33324)	5/13/1998 11:04:00 PM
From: DavidG	Read Replies (1) \| Respond to of 53903

Pat, well even if costs are coming down what margins is MU working at, not much.. here's a hypothetical if ever again ASP goes back to 4.05 they only earned what was it .04 a share (2 qrts ago) last qrt. ASP was 3.50 and they lost what 200 mil...through all of this the stock has stayed 29-33 range, no? would you be willing to bet on upside and why would you.. this qrt ASP maybe if the're lucky it will be $3... The ASP is already above 4.05 for the 64mb chip being produced. 16mb is almost obsolete. According to MU they are at 50% 64mb chips at a cost of $10. Maybe this is what is confusing to a lot of "forever bears" on this thread. There is no big secret that memory prices drop every week of every month during each year. Moore showed us this many years ago. The PC systems now being sold are equipped with 64mbytes, where only 64mb chips are being used. Even the cheapies are now 32 mbyte with the 16mb or 64mb chips. The new software will be demanding more system memory, also causing existing systems to upgraded to 64mb. So measuring MU by their ASP's may be misleading...certainly confusing at the least. The real key is the cost per bit, and that is what is dramatically dropping and I believe MU is continuing to lead the pack on efficiently staying ahead of the curve in this area. As far as what the margins are for MU, which is derived from the production cost and ASPs, that is not very well publicized, and we won't find that out until their next earnings report. DavidG