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

To: Carl R. who wrote (44796)	4/3/1999 4:55:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

carl, the ONLY way to reduce cost is to ramp production at HUGE rates. so, if everyone cuts production then they lose money on their initial billion dollar investment. if they cut costs then prices collapse. will mu continue to run full speed like they did w/ 16 mb? maybe. 1. they are about 20% of the market. they now have HUGE control over pricing ALL BY THEMSELVES. 2. the other players aren't going to sit idly by and let mu take over the entire market which is the end result of what you say. it is a bad business. why did 16 mb stop at $8, bounce and then plunge to $1.50? demand for dram is slowing. so, mu loses money this q and spends another $250,000,000 on equipment to run in place... bad business.