Micron Cuts DRAM and NAND Flash Output as ASP Falters

STEM

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Micron has the smallest market share of the big 3 for dram, and I'm pretty sure they aren't top 3 for nand either. Doesn't samsung sell directly to consumers as well?

Samsung sells SSDs directly to consumers. I was thinking of RAM.
 

Staples

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Cutting output is done is EVERY industry in the world. If this is illegal, so is just about everything.
 
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DRAM was already overpriced by the amount they were expecting, back when DDR3 was at its end stage they increased pricing by $30-50(30% price hike due to what they called reallocation resources to deal with greater cell phone Lpddr Dram, so this falling percentage is a case of pure market speculation price fixing by creating an overinflated norm, now they will cause a shortage when resulting 7nm parts arrive and people will end up paying significantly more for RAM.
 
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Samsung sells SSDs directly to consumers. I was thinking of RAM.

JMicron sells under the name Crucial
Samsung sells under the name Samsung

Hynix - Doesn't sell direct to consumers, but is found in a lot of consumer electronics.

Toshiba, Panasonic, NEC, Fujistsu, ISSI, Etron, Mitsubishi, Hyundai - makes but doesn't sell except in their own products or for industrial mainly non consumer there are more.
 

STEM

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JMicron sells under the name Crucial
Samsung sells under the name Samsung

Hynix - Doesn't sell direct to consumers, but is found in a lot of consumer electronics.

Toshiba, Panasonic, NEC, Fujistsu, ISSI, Etron, Mitsubishi, Hyundai - makes but doesn't sell except in their own products or for industrial mainly non consumer there are more.

SK Hynix is Hyundai.
 

RealBeast

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Too late Micron.

Their inventories are ballooning out of sight -- well higher in terms of days sales that any time in modern history (at least 1995) by a large margin.

They are currently sitting on about 140 days of inventory and it is expected to climb further. That measure is rarely over 100 (it hit 120 days in one quarter of 2001), and most often 40-60 days.

What does this mean? The *NEED* to be the first to cut prices and clear inventory before Samsung or Hynix or they will be financial roadkill.
 

velusip

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It's not Capitalism when a few large DRAM/NAND manufacturing conglomerates have been allowed to purchase all the small competitors through government approvals, leaving the field a collusion-filled wasteland so that they can get away with pulling shit like this. This is government sponsored statist *corporatism* at its finest.

If you want capitalism, then start your own DRAM manufacturing venture and challenge them.
Thanks for this refreshing bit of sense.

I mean, Micron expects a certain profit margin and it just so happens that they can adjust it at will using the most basic supply and demand principles. You can't blame them for doing what works and adjusting the numbers to suit. However, putting ourselves into this situation where we are dependent on a handful of companies is the real problem -- not Micron.

And you're absolutely right about actual capitalism. A company which successfully competes with their own success (and conversely, the mere absence of a product) is not an example of capitalism at all. It's just what happens when capitalism is not encouraged by an industry.
 
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Yet, I've had no problems with Crucial SSD's or ram products over the years.
Only SSD I've even had die was a SanDisk, and I've only had 2 of them.

I've purchased and installed several dozen Crucial SSD's over the past few years, and have never had a failure.
Same with Samsung, never had a failure.

Out of the countless Crucial memory I've bought of the years, I only remember 1 memory stick going bad, a 1GB DDR stick, and that was after years of use.
I've had at least two Crucial SSD's die on me, the endurance of their SSD's is pitiful in general and the quality hasn't impressed me. Honestly, I did better with the Mushkin 1TB drives I picked up, at least those pieces of crap lasted me a year each (I still run one as a swap file drive, but when I load it up past 400GB it starts failing). Now, I might use my computer more than some people, however, I had an ancient Plextor SSD that lasted me 5 years before I ended up donating the computer and it still works if memory serves, with the people I donated it to. Same story for an older Samsung 840 Pro, it was un-killable, I donated that system as well.

I switched to Sandisk/WD and Samsung a while ago and I've had zero issues with them. No more Crucial for me. The sandisk is running strong for 2 years now, the WD SSD stuff is closing on a year and the Samsung 970 Pro is never leaving my main system until I manage to melt it.

Correction: 3 Crucial Drive Failures, one died after minimal usage on a spare pc. MX300 iiirc.
 
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next-Jin

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Cutting output is done is EVERY industry in the world. If this is illegal, so is just about everything.

Let’s not speak to reality here, they deserve to be taken over and broken up by the government!

I don’t get these other guys replies, like seriously.

You are selling a product that has months and months of inventory causing prices to drop 30% or more and likely to get worse. So let’s ramp up that production and continue to overload the supply chain!

Microsoft ought to be taking business lessons from y’all. There should be Xbox Ones on shelves for 79.99 with 20 million in store inventories with them building 500k a month, actually no they need to increase production time and make that a solid million a month. Worldwide sales are 300k a month but what the hell, our brand value is already terrible let’s shoot for 49.99 and bundle Forza and 2 Pro controllers.
 

DejaWiz

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Let’s not speak to reality here, they deserve to be taken over and broken up by the government!

I don’t get these other guys replies, like seriously.

You are selling a product that has months and months of inventory causing prices to drop 30% or more and likely to get worse. So let’s ramp up that production and continue to overload the supply chain!

Microsoft ought to be taking business lessons from y’all. There should be Xbox Ones on shelves for 79.99 with 20 million in store inventories with them building 500k a month, actually no they need to increase production time and make that a solid million a month. Worldwide sales are 300k a month but what the hell, our brand value is already terrible let’s shoot for 49.99 and bundle Forza and 2 Pro controllers.

When there is true market competition, the basis is to have people choose your products over the others. This usually means lowest price wins the wallets.

When there is a lack of competition, the consumer choice is removed and supply and pricing gets dictated to the buyers. And here we are.
 

workshop35

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When there is true market competition, the basis is to have people choose your products over the others. This usually means lowest price wins the wallets.

When there is a lack of competition, the consumer choice is removed and supply and pricing gets dictated to the buyers. And here we are.
Why is there a lack of competition? Its not like theres only one company making dram and nand
 

filip

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Why is there a lack of competition? Its not like theres only one company making dram and nand

Collusion, this will be the third or forth time they will be fined for collusion. Works every time though so why would they stop.
 

workshop35

Gawd
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Collusion, this will be the third or forth time they will be fined for collusion. Works every time though so why would they stop.
I only found one instance in 2002. I know there is an active lawsuit aledging collusion in 2018, but didnt find anything else
 

GlowingGhoul

Whines about Whiners
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Gotta love modern day, and vastly unregulated, capitalism.

The socialism you admire so much doesn't ever meet consumer demand, for anything, doesn't innovate, and is completely immune to consequences for failing to perform.
 

next-Jin

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Collusion, this will be the third or forth time they will be fined for collusion. Works every time though so why would they stop.

Are you saying this instance will also be collusion? This is a sound business decision. Dozens of articles are reporting mountains of excess supply which will likely get worse throughout the year. Why would any company get called out for collusion when they slow down production?
 

filip

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Are you saying this instance will also be collusion? This is a sound business decision. Dozens of articles are reporting mountains of excess supply which will likely get worse throughout the year. Why would any company get called out for collusion when they slow down production?

Nope, just saying there is less competition then there should be due to collusion. Collusion will come after this when they start the price hikes again after they sell all the inventory and are not producing enough.
 

nutzo

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I've had at least two Crucial SSD's die on me, the endurance of their SSD's is pitiful in general and the quality hasn't impressed me. Honestly, I did better with the Mushkin 1TB drives I picked up, at least those pieces of crap lasted me a year each (I still run one as a swap file drive, but when I load it up past 400GB it starts failing). Now, I might use my computer more than some people, however, I had an ancient Plextor SSD that lasted me 5 years before I ended up donating the computer and it still works if memory serves, with the people I donated it to. Same story for an older Samsung 840 Pro, it was un-killable, I donated that system as well.

I switched to Sandisk/WD and Samsung a while ago and I've had zero issues with them. No more Crucial for me. The sandisk is running strong for 2 years now, the WD SSD stuff is closing on a year and the Samsung 970 Pro is never leaving my main system until I manage to melt it.

Correction: 3 Crucial Drive Failures, one died after minimal usage on a spare pc. MX300 iiirc.

I have ran into a firmware problem on a few of the Crucial drives (looked like a failure, but just needed a firmware update, and no data lost).
However, I have also had firmware issues with the Samsung 840 EVO's that not only required a firmware upgrade, but also a full wipe or refresh of all the data on the drive.

Most the SSD's I've bought are 1TB and are heavily used copying/running multiple server VM's demoing the software product my company sells.
Most the SSD's have been in use for 3-4 years with no failures other than the 1 Sandisk.
 

ep0x73

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If there is oversupply a company has all the rights to not produce more product that lowers cost and lowers their price ratio
Show me any company that intentionally likes to loose money.
Micron is just doing what is financially responsible until the market changes, nothing sinister about it.
 
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I have ran into a firmware problem on a few of the Crucial drives (looked like a failure, but just needed a firmware update, and no data lost).
However, I have also had firmware issues with the Samsung 840 EVO's that not only required a firmware upgrade, but also a full wipe or refresh of all the data on the drive.

Most the SSD's I've bought are 1TB and are heavily used copying/running multiple server VM's demoing the software product my company sells.
Most the SSD's have been in use for 3-4 years with no failures other than the 1 Sandisk.
My issues resulted in dead drives that can't even be communicated with to firmware update. I don't run anything cheap anymore because of it. The only stuff on the low end I have left are the SanDisk, a WD blue 512, and my other 2 rigs run a 970 Pro (main PC) and a WD Black (front room)
 
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