Micron is reducing the production of dram and nand due to falling prices

After several years of high NAND and DRAM memory prices, we are finally seeing a sustained drop in those prices. So much so that, according to Micron, it has caused a drop of more than 20% in the average sale price (PEA) of its products during the quarter ended in February 2019.

Micron reduces DRAM and NAND memory production by 5%

This, of course, directly affects your income, which has fallen 26% sequentially and 21% in the year to reach $ 5.8 billion in its second fiscal quarter of 2019. Additionally, its DRAM revenue decreased 30% sequentially and 28% year-over-year. This situation cannot continue for manufacturers, and Micron is ready to fight it.

Excess supply in both the DRAM and NAND sectors is also responsible for the sharp drop in prices, which is "worse than expected . " The company also expects revenue to fall 17% more in the third quarter of 2019. This causes a drop of between $ 4.6 and $ 5 billion, and the gross margin has dropped from 50% in the previous quarter to 37- 40%.

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For this reason, the company has announced plans to reduce production by 5%. This applies to both your DRAM and NAND flash products. In other words, everything that is RAM and SSD storage units for PC, which is what interests us.

The perspective is that NAND and DRAM memories continue to drop in price throughout the year, so Micron would only be slowing the decline, but could not avoid it.

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