Slow Economy Promises Bad Year for Apple, NAND, and DRAM

[zekrahminator]

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.

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[Basard]

Doesn't this promise a bad year for pretty much everybody.

 

[Easy Rhino]

yea, this will translate to almost all areas of the consumer tech industry. the nice thing tho for us consumers with a little extra cash is that the prices should drop since demand will drop. that will change though when companies cut back on their supply to save on production costs.

 

[FatForester]

Yea, why are we worrying only about Apple when this effects literally everyone?

 

[flashstar]

I'm not seeing any problems here with the economy. I'm certainly doing better this year than last!

Don't forget, we aren't in a recession. The economy is still growing.

 

[Ravenas]

Yea, why are we worrying only about Apple when this effects literally everyone?

Seems like the article is considering Apple products as "luxurious products" for some reason...

I've personally never tried to use my MacBook as a Lazyboy.

 

[FatForester]

Seems like the article is considering Apple products as "luxurious products" for some reason...

I've personally never tried to use my MacBook as a Lazyboy.

I've accidentally almost sat on my laptop before. It definitely wasn't as comfortable as a Lazyboy.

 

[zekrahminator]

Bear with me here.

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...

 

[FatForester]

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.

You'd be surprised.

 

[Triprift]

yea, this will translate to almost all areas of the consumer tech industry. the nice thing tho for us consumers with a little extra cash is that the prices should drop since demand will drop. that will change though when companies cut back on their supply to save on production costs.

Its abit different here in oz the economy despite numerous interest rate rises is very strong.I like the comment on lower prices maybe ill see something like that this year hopefully.

 

[TheGuruStud]

I'm not seeing any problems here with the economy. I'm certainly doing better this year than last!

Don't forget, we aren't in a recession. The economy is still growing.

I don't what country you're in, but it sure the hell isn't the US (or at least your reality isn't if you are from the US).

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.