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[Xbitlabs.com]Micron: DRAM Production to Remain Limited in 2013 and 2014. - Page 3

post #21 of 49
Ram is still profitable at $30/8gb. Just because you are used to high ram prices doesn't mean they should remain high. Hard drives were dirt cheap for a while then they suddenly tripled prices, renvenue soared. I really hate the tech market for being able to weasel out of price fixing. Free market does not mean you can communicate with other manufactures to decrease production to increase price. There will be idle machines and people out of work because of the gentlemans agreement to put money in the pockets of the owners pockets. If all car manufactures decided to double the prices of new cars there would be outrage.

Shame on you if you support this without stocks in the companies.

(I'm a conservative still)
post #22 of 49
Quote:
Originally Posted by Feild Scarecrow View Post

Ram is still profitable at $30/8gb. Just because you are used to high ram prices doesn't mean they should remain high. Hard drives were dirt cheap for a while then they suddenly tripled prices, renvenue soared. I really hate the tech market for being able to weasel out of price fixing. Free market does not mean you can communicate with other manufactures to decrease production to increase price. There will be idle machines and people out of work because of the gentlemans agreement to put money in the pockets of the owners pockets. If all car manufactures decided to double the prices of new cars there would be outrage.

Shame on you if you support this without stocks in the companies.

(I'm a conservative still)
HDDs went up because the entire market source for a single part went down due to flooding. No supply and still the demand = economics you do not understand.
post #23 of 49
Quote:
Originally Posted by Feild Scarecrow View Post

Ram is still profitable at $30/8gb. Just because you are used to high ram prices doesn't mean they should remain high. Hard drives were dirt cheap for a while then they suddenly tripled prices, renvenue soared. I really hate the tech market for being able to weasel out of price fixing. Free market does not mean you can communicate with other manufactures to decrease production to increase price. There will be idle machines and people out of work because of the gentlemans agreement to put money in the pockets of the owners pockets. If all car manufactures decided to double the prices of new cars there would be outrage.

Shame on you if you support this without stocks in the companies.

(I'm a conservative still)
How do you know the profitability of RAM? What's your source?

Do you have said evidence of collaboration?

It actually is pretty redicilous that the companies haven't learned their lesson from the Vista launch days and cut production faster.
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post #24 of 49
Quote:
Originally Posted by DuckieHo View Post

How do you know the profitability of RAM? What's your source?

Do you have said evidence of collaboration?

It actually is pretty redicilous that the companies haven't learned their lesson from the Vista launch days and cut production faster.

What..? Do u think their costs are getting higher..? No, they can make so many items at such little cost, ie so effecient. That they are artificially slowing down production, for higher profit... due to artificialy creating demand.

There is zero justification, except for moAr profits = corp greed.
post #25 of 49
Quote:
Originally Posted by formula m View Post

What..? Do u think their costs are getting higher..? No, they can make so many items at such little cost, ie so effecient. That they are artificially slowing down production, for higher profit... due to artificialy creating demand.

There is zero justification, except for moAr profits = corp greed.

Here's an example:

US Agricultural industry from late 19th century to after WWII.


What was it's problem?

Overproduction. It was suffering from low crop prices, since farmers being individualistic, simply grew more crops when profits fell, which only depressed the crop prices even further. When WWI occurred, foodstuff demand jumped because of the ruin of Europe. However, farmers responded by taking out loans and buying more land and equipments to meet the demand.

When WWI ended, they ended up a surplus of everything, except for money and consumers. European agriculture was recovering, and it didn't help the fact that there was an international tariff war ongoing, preventing exportation of US agricultural goods.

It got so bad that FDR decided to order the destruction of crops and livestock to increase the foodstuff prices, so that farmers (that haven't been booted off of their land from bankruptcy) had a chance to recover.

The main event that saved them was WWII's even bigger demand shock.
post #26 of 49
Quote:
Originally Posted by formula m View Post

What..? Do u think their costs are getting higher..? No, they can make so many items at such little cost, ie so effecient. That they are artificially slowing down production, for higher profit... due to artificialy creating demand.

There is zero justification, except for moAr profits = corp greed.

You didn't answer his question. How do you know $30/8gb is profitable? Just because they were selling that cheap, doesn't mean they were ever profitable at the price. In fact, quite a few companies were starting to struggle, and several pulled out of the ram market because competition was extremely stiff and prices were extremely low.

They aren't "artificially" slowing down production. They simply can't justify producing as much as they are right now. They have to slow production down. This is basic economics, and companies need to be "greedy". Without a profit, they won't be able to expand. They won't be ready to switch to DDR4, and whatever different shifts the market makes. A company has a lot of justification for wanting to make money. If they don't make money, we won't have any ram.
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post #27 of 49
Quote:
Originally Posted by mmonnin View Post

HDDs went up because the entire market source for a single part went down due to flooding. No supply and still the demand = economics you do not understand.

It's funny you say that since ,if I remember correctly, both WD and SG shipped out the most units ever that year...

Edit: I do support this move. While I do not like paying more, the company's need to stay alive. If most of them died and only one company lived guess what the price would do.
Edited by nbmjhk6 - 3/25/13 at 2:46pm
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post #28 of 49
Quote:
Originally Posted by sikkly View Post

You didn't answer his question. How do you know $30/8gb is profitable? Just because they were selling that cheap, doesn't mean they were ever profitable at the price. In fact, quite a few companies were starting to struggle, and several pulled out of the ram market because competition was extremely stiff and prices were extremely low.

They aren't "artificially" slowing down production. They simply can't justify producing as much as they are right now. They have to slow production down. This is basic economics, and companies need to be "greedy". Without a profit, they won't be able to expand. They won't be ready to switch to DDR4, and whatever different shifts the market makes. A company has a lot of justification for wanting to make money. If they don't make money, we won't have any ram.

We know ( for a fact) because they have been operating at those margins for a length of time. It is illegal to sell ur product cheaper than it cost to make it... thats called dumping.
post #29 of 49
Quote:
Originally Posted by formula m View Post

We know ( for a fact) because they have been operating at those margins for a length of time. It is illegal to sell ur product cheaper than it cost to make it... thats called dumping.

so gaming console sales are illegal? we all know sony/microsoft sell them at a loss and bet on recouping thru perhiperals and game sales/DLCs...i think the only reason it would be illegal if there were anti-trust concerns
post #30 of 49
Quote:
Originally Posted by formula m View Post

We know ( for a fact) because they have been operating at those margins for a length of time. It is illegal to sell ur product cheaper than it cost to make it... thats called dumping.

In all reality, they havent been selling RAM that low for for such a long length of time. RAM was 100$/8 GB a lot more recent than you may like to think.

RAM is not as lucrative as you make it out to be. Very big and succesful companies PULLED OUT of the memory market due to low profit margins.

Is it profitable at the current rates? Yes.

Is it very profitable? No.

Does it have such little revenue that people are losing their jobs over it? Yes. And that's a problem.
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