Thursday, February 21st 2008
Slow Economy Promises Bad Year for Apple, NAND, and DRAM
When the going gets rough, people simply don't see a need to spend so much on luxuries. A prevalent example is Apple. Now that the economy as a whole is slowing down, Apple is realizing that people simply aren't going to buy a gazillion iPhones and iPods this year. Considering the majority of the aforementioned devices used memory from NAND, Apple suddenly decided that they don't need to buy so much memory from NAND after all. Estimates of growth for NAND suddenly took a turn for the worse, going from upwards of 30% to a rather low single-digit number. Unfortunately for NAND, this announcement comes after NAND decided to increase capital investment by 20%. DRAM, on the other hand, has it worse. They've already predicted abysmal growth, but with a continuing demand for low RAM prices, abysmal growth translates into extreme losses.
Source:
DailyTech
10 Comments on Slow Economy Promises Bad Year for Apple, NAND, and DRAM
Don't forget, we aren't in a recession. The economy is still growing.
I've personally never tried to use my MacBook as a Lazyboy.
I classified Apple products as "luxury", because people don't tend to buy $600 phones and $200 music players when they're worried about mortage/food/gas/heat/electric/car payments.
I know that when my paycheck comes though, I'm prolly not going to give any of it to Apple...
We've been tanking since Mr. Nutjob took office. If our economy is growing, how come we've lost 36% of the value of our dollar (printing money night and day doesn't help)? Not to mention being in debt that will take 100 yrs to pay off. That really helps.