Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Skeeter Bug who wrote (45770)	5/13/1999 12:27:00 AM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Micron Technology CEO Appleton Says Memory-Chip Prices Falling Boise, Idaho, May 12 (Bloomberg) - Micron Technology Inc. Chief Executive Steve Appleton said spot prices for some computer memory chips have fallen as much as 30 percent in the past six weeks as more supply has come on the market. Memory prices have been volatile in the past few years because of oversupply and consolidation in the industry, though they had been stable in recent months. That helped Micron post its first profit in more than a year in the fiscal second quarter ended March 4. ''Selling prices have moved back down,'' Appleton said in an interview. ''The degree to which (it will affect Micron's earnings) we won't know until we finish the quarter.'' Micron had been benefiting from prices that didn't fall as fast as expected, as well as turmoil in Asia that hampered many of its biggest competitors, including Samsung Corp. and Hyundai Electronics Industries Co. A strike at LG Semicon Co. that shut down production for a few weeks helped Micron gain market share in the quarter, and the company has been increasing its production. Also, Hyundai agreed last month to take over LG Semicon, creating the No. 1 maker of memory chips and raising concern that heightened competition will mean lower market share and increased pricing pressure. Samsung is No. 1 and Micron is No. 2. Micron's fiscal third quarter ends in a few weeks. Analysts expect the company to report per-share earnings of 13 cents, with the highest estimate at 33 cents. Boise, Idaho-based Micron's shares have fallen 44 percent since February, when they traded as high as 72. There is concern that lackluster demand for personal computers, which is where most memory chips are used, and falling prices will hurt Micron. Micron shares rose 7/8 to 40 3/16 today.