Micron locks in historically high memory prices for five years
1–10 of 81 posts
Re: Micron locks in historically high memory prices for five years
#2Predatory. I hope the tech community remembers this and diversifies away from companies that behave this way
Re: Micron locks in historically high memory prices for five years
#3Predatory. I hope the tech community remembers this and diversifies away from companies that behave this way
Yeah they're going to diversify... to one of the other two memory companies who will likely be raising their prices too, because why should they be suckers?
Re: Micron locks in historically high memory prices for five years
#4That's ... just sad.
Re: Micron locks in historically high memory prices for five years
#5Re: Micron locks in historically high memory prices for five years
#6Predatory. I hope the tech community remembers this and diversifies away from companies that behave this way
Yeah they're going to diversify... to one of the other two memory companies who will likely be raising their prices too, because why should they be suckers?
The suckers are those companies agreeing to this deal. 'Your margin is my opportunity' means prices will fall eventually once more production come on line. The invisible hand will slap their faces
Re: Micron locks in historically high memory prices for five years
#7wishful thinking from MU holders. These LTAs or SCAs are just hedges on the prices going even higher. Once spot prices start dropping, all of the agreements will be broken in a millisecond. The break up fees have already been paid! There's absolutely nothing the buyer has to do, but to simply not buy at the inflated old price and instead buy from someone else at the new, lower price.
Does anyone really think that there is any agreement in the world that will keep companies paying $1000 for a product priced at $20 on the market? The larger the gap the larger the incentiv to break the agreement.
Re: Micron locks in historically high memory prices for five years
#8Earlier quoted context omitted.
Yeah they're going to diversify... to one of the other two memory companies who will likely be raising their prices too, because why should they be suckers?
The suckers are those companies agreeing to this deal. 'Your margin is my opportunity' means prices will fall eventually once more production come on line. The invisible hand will slap their faces
nobody is agreeing to what the headline says. the SCAs are just a hedge against even higher prices. the agreements will be broken the second prices drop.
Re: Micron locks in historically high memory prices for five years
#9Predatory. I hope the tech community remembers this and diversifies away from companies that behave this way
> I hope the tech community remembers this and diversifies away
Doubt it. Has it EVER happened before?
Re: Micron locks in historically high memory prices for five years
#10wishful thinking from MU holders. These LTAs or SCAs are just hedges on the prices going even higher. Once spot prices start dropping, all of the agreements will be broken in a millisecond. The break up fees have already been paid! There's absolutely nothing the buyer has to do, but to simply not buy at the inflated old price and instead buy from someone else at the new, lower price. Does anyone really think that the…
I think you are right but would like to keep in consideration that penalty clauses are real and can be enforced in court. We have no (or perhaps: have some) clue how far the bargaining power is leaning toward the suppliers. Maybe the signatories in the SCA are so cornered, they will sign anything and think ‘boom or bust’.