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Micron locks in historically high memory prices for five years

theregister.com

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Re: Micron locks in historically high memory prices for five years

#71

Post by digitaltrees »

pyrale wrote: post #27
cycomanic wrote: post #24

Earlier quoted context omitted.

It's funny how everyone (especially here on HN) accepted (and expected) extremely high profit margins from software businesses, but now that hardware companies are increasing their margins to match it is suddenly outrageous. The same was reflected in engineering salaries, with software engineering salaries being often a multiple of hardware engineering ones. All this despite the fact that software businesses is argua…

This exactly. The software industry has enjoyed lack of antitrust for decades now, and only complains now that others are able to ask any price against them.

Look at my posts elsewhere, I am very critical of the lack of antitrust.

Re: Micron locks in historically high memory prices for five years

#72

Post by Timon3 »

erebearalte wrote: post #49
cm2187 wrote: post #20

Earlier quoted context omitted.

PC enthusiasts aren't exactly sentimental when in front of a spec sheet and a price list. Plus where else are you going to go. All manufacturers are hiking up their margin if you believe their stock prices.

If the gaming community is any indication (nvidia, lootboxes and gatcha mechanics, pre-ordering etc.), most people won't care and will be just happy that prices are down again and FOMO will win.

I just don't understand how the multi-billion dollar industries (who employ hordes of people whose entire careers are spent researching how to best influence the average person) keep winning!

Re: Micron locks in historically high memory prices for five years

#73

Post by digitaltrees »

naturalmovement wrote: post #3
digitaltrees wrote: post #2

Predatory. 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?

I am not in favor of monopoly and cartels for this reason but if even one competitor doesn’t do this and the whole ecosystem rewards them it sends a signal

Re: Micron locks in historically high memory prices for five years

#74

Post by digitaltrees »

bluecalm wrote: post #28
digitaltrees wrote: post #2

Predatory. I hope the tech community remembers this and diversifies away from companies that behave this way

How do you want them to behave? There is more demand than production. How would they choose who to sell to at lower prices? Organize a lottery?

I am a not concerned they are raising prices now. I am concerned they are making agreeing to higher prices for the next five years as a condition of buying now.

Re: Micron locks in historically high memory prices for five years

#75

Post by fauigerzigerk »

davidm-d wrote: post #46

Isn't this the market working as intended? This agreement puts a floor on the price that Micron can sell their chips at, and a ceiling on the price that tech companies buy them. Micron wants the floor, so they can invest in more fab capacity without going bankrupt if there's a memory glut. Tech companies want a ceiling so they can keep selling their products even if there's a shortage. If there's a glut, the tech com…

I agree. But Micron says it wants to end the boom-bust cyles in the memory chip business for good. It won't work.

A higher price floor for longer creates an incentive for competitors to bring more capacity online. The eventual supply glut will be even bigger.

The cyclicality of the semiconductor business (especially for simpler chips) is a result of the fact that inventory can build up. That hasn't changed and it never will.

Re: Micron locks in historically high memory prices for five years

#76

Post by _0ffh »

kubb wrote: post #53
_0ffh wrote: post #41

Earlier quoted context omitted.

They can only pay so much because of the expectations about the generated value. Those might turn out wrong, as any expectation, but value is very much in the picture.

If by value you mean profit, but that's a conflation that you shouldn't be making. Often profit is generated by actively harming people (eg. human trafficking).

I'm not.

Re: Micron locks in historically high memory prices for five years

#77

Post by kubb »

_0ffh wrote: post #76
kubb wrote: post #53

Earlier quoted context omitted.

If by value you mean profit, but that's a conflation that you shouldn't be making. Often profit is generated by actively harming people (eg. human trafficking).

I'm not.

Then the value-expectations are even more dubious and harder to justify.

Re: Micron locks in historically high memory prices for five years

#78

Post by _0ffh »

kubb wrote: post #77
_0ffh wrote: post #76

Earlier quoted context omitted.

I'm not.

Then the value-expectations are even more dubious and harder to justify.

I don't need to. Those who get it get it. Apparently that doesn't include you, and I'm fine with that.

Re: Micron locks in historically high memory prices for five years

#79

Post by kubb »

_0ffh wrote: post #78
kubb wrote: post #77

Earlier quoted context omitted.

Then the value-expectations are even more dubious and harder to justify.

I don't need to. Those who get it get it. Apparently that doesn't include you, and I'm fine with that.

You probably mean that those with money decide what has value or something like that. If you don’t want to talk that’s fine by me.

Re: Micron locks in historically high memory prices for five years

#80

Post by t0mpr1c3 »

polski-g wrote: post #67
striking wrote: post #11

Earlier quoted context omitted.

https://en.wikipedia.org/wiki/DRAM_price_fixing_scandal > To date, five manufacturers have pleaded guilty to their involvement in an international price-fixing conspiracy between July 1, 1998, and June 15, 2002, including Hynix, Infineon, Micron Technology, Samsung, and Elpida. It is history; we have not learned; we are doomed to repeat it.

Price-fixing is illegal. Raising prices is not.

Precisely. The 3 existing RAM manufacturers all have previous. Execs went to jail.
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