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With many economies under inflation and other factors influencing a weak demand, these are perhaps the worst days for several companies involved in manufacture, marketing and distribution of DRAM and related products. While on the surface, all the consumer can see is a falling market price, in reality it is a composed chaos.
DigiTimes reports a falling demand for DRAM in the Asia-Pacific region as the Chinese government cracks down on users of contraband DRAM products brought in from manufacturing states. The government crackdown began with the thousands of internet-shacks and the components (both hardware and software) they used. All this comes ahead of the 2008 Beijing Olympics as a 'purge drive'. As a result, thousands of internet-shacks have been closed, bans have been imposed on the use of contraband hardware, most of which consist of DRAM related hardware. China also brought about changes in their customs routines and procedures making it extremely complicated for importers, stepping up waiting queues, affecting markets and more importantly, dampening demand.
Micron Technology, regarded as the American DRAM perfectionists, have posted record losses according to a recent Bloomberg report. The net loss expanded to $236 million, or 30 cents a share, from $225 million, or 29 cents, a year earlier. Sales rose 16 percent to $1.5 billion in the period ended May 29, the Boise, Idaho-based company said in its filing.
Micron competes with Samsung Electronics, the world's second-largest semiconductor manufacturer, which uses profits from its mobile-phone business and flat-panel display unit to continue to invest in new production even when prices are low. Unfortunately, lack of investment and poor market is hitting the rest of the DRAM industry hard.
What does this all mean to you as a consumer? This is probably the best time to buy memory products, be it flash memory for mobile-phones, cameras and other gadgets or computer memory upgrades. Weak demands trigger price-drops as an immediate reaction. If the market doesn't respond to price-drops either, companies cease to invest in PD and R&D, go into clearance mode. This is comparable to a plant in wilting.
With inputs from Bloomberg and DigiTimes
View at TechPowerUp Main Site
DigiTimes reports a falling demand for DRAM in the Asia-Pacific region as the Chinese government cracks down on users of contraband DRAM products brought in from manufacturing states. The government crackdown began with the thousands of internet-shacks and the components (both hardware and software) they used. All this comes ahead of the 2008 Beijing Olympics as a 'purge drive'. As a result, thousands of internet-shacks have been closed, bans have been imposed on the use of contraband hardware, most of which consist of DRAM related hardware. China also brought about changes in their customs routines and procedures making it extremely complicated for importers, stepping up waiting queues, affecting markets and more importantly, dampening demand.
Micron Technology, regarded as the American DRAM perfectionists, have posted record losses according to a recent Bloomberg report. The net loss expanded to $236 million, or 30 cents a share, from $225 million, or 29 cents, a year earlier. Sales rose 16 percent to $1.5 billion in the period ended May 29, the Boise, Idaho-based company said in its filing.
Micron competes with Samsung Electronics, the world's second-largest semiconductor manufacturer, which uses profits from its mobile-phone business and flat-panel display unit to continue to invest in new production even when prices are low. Unfortunately, lack of investment and poor market is hitting the rest of the DRAM industry hard.
What does this all mean to you as a consumer? This is probably the best time to buy memory products, be it flash memory for mobile-phones, cameras and other gadgets or computer memory upgrades. Weak demands trigger price-drops as an immediate reaction. If the market doesn't respond to price-drops either, companies cease to invest in PD and R&D, go into clearance mode. This is comparable to a plant in wilting.
With inputs from Bloomberg and DigiTimes
View at TechPowerUp Main Site
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