Micron Revenues Fall and 5% Reduction in RAM Chip Production Expected

5% reduction in the production of chips for SSD and RAM memory by Micron, which sees its income reduced by the drop in the price of RAM.

We have seen how the price of SSDs has dropped a lot, now we can find large capacity drives at an affordable price. RAMs have also come down a lot in price, making drives more affordable. This is due to a market slowdown and a glut of available units. Already in the step we have learned that Samsung, SK Hynix and Micron have agreed production to prevent the price from falling. Now it has been announced that Micron will cut costs this year and produce 5% less RAM.

Micron reduces RAM chip production by 5%

The company has published its financial report and the data is not good. $ 5.800 billion have been entered, which is 21% less than the same quarter last year. Last month's earnings were $ 1.620 billion, down 26%. Some data that is due to the price adjustment of RAM memories. The price of DRAMs has fallen 20% in the last month and has hit Micron notoriously.

Despite the reduction in income and the drop in prices, the value of the company's shares on the stock market has not been affected. When a company experiences a drop in revenue, investors typically withdraw their capital. The company on the other hand has said that expenses will be reduced and limit its production by 5%, thus reducing the downward trend in prices.

Even with the drop in earnings, stocks are up 10%. This means that investors trust the company and the company's proposed adjustment has been well received. The company's fixed capital is estimated at $ 10.500 billion, which will be reduced by at least 10% to $ 9.500-9.000 billion.

Sanjay Mehorta, CEO of Micron has said that the memory market in the fourth quarter will rebound. An increase in demand for servers and data centers is expected. It also highlights that it will be in the middle of the year when these markets will start to rebound.

Source: expreview