Micron's decade-long efforts to secure long-term supply agreements failed.
@bubbleboi delusional.crying this hard when the shoe is on the other foot is so pathetic. maybe companies like apple and the hyperscalers should have thought about the health of the ecosystem decades ago first instead of squeezing for max margins? none of this is the memory company's fault.
Many users blame Apple and hyperscalers for memory makers' capacity shortfalls and ecosystem neglect due to years of aggressive price pressure, while a few express satisfaction that suppliers are finally pushing back.
No Digg Deeper questions have been answered for this story yet.
On the topic, I wrote this two years ago:
@semicap There was a period when Apple held all the cards. Against TSMC, Micron and others. Not anymore as Enterprise AI is way more profitable than consumer business. Since they dont hold any cards, they have to pay whatever they charge. I thought Micron exited consumer memory.
In the 10 years I have followed the memory market, I have watched Micron try to sign LTAs to varying degrees across the past two boom cycles, with more or less no luck.
So to complain now about memory makers' inability to invest in capacity during bust phases when every cent was getting squeezed out of ASP is embarrassing.
A real FAFO moment for Apple.
Tim Cook says the memory guys are at fault for Apple raising prices. A Micron executive I interviewed last night pointed the finger right back.
@semicap Tim Cook wasn't blaming anyone or even complaining. He was just stating reality, which he is required to do as CEO of a publicly traded company. Memory prices are going up, so the phone price must go up.
@semicap As true practitioners of commodity markets (energy, grains, etc) say, high prices fix high prices and low prices fix low prices.
@semicap And nobody deserves it more than Apple 🤗 Satisfying to see that they can't bully one of their suppliers.
@bubbleboi investments into fabs is contingent on customers for the memory cos. the customers are the ones who failed to forecast the demand causing this shortage. even worse, it's the customers that squeezed margins and threw contracts in the trash that created this environment. get fucked
@sreesub @semicap They exited the Crucial brand, which was sticks of DRAM sold to consumers. I think they probably do LPDDR for Apple.
Exactly. Hyperscalers ballooned into massive fucking behemoths and we have only 3 remaining Memory companies that can serve them adequately. During the bust phases, Micron scraped by with pennies unable to invest in their own capex. Now that they have a product that allows them some degree of price control, the whiny fucking babies and doomsayers complain like fucking FAGGOTS about it 😂😂
I don’t even have a position in $MU right now but this whole thing is hilarious. Didn’t $MSFT go 10 years without making a stock price gain? Is the world going to end because the MAG7 go down in price temporarily? Fuckin pussies lol
@semicap Couldn’t agree more. Memory makers deserve their moment
@semicap At the end of the day Apple actually brings products to the market, Micron is a money pit the only reason anyone defends is bc of the stock
@semicap i don't appreciate $MU price gouging but i am glad they are sticking it to $AAPL and their consumers who are idiotic to buy pricey apple products. but apple like the goons they are, are sticking $MU price gouging to their consumers. they all deserve each other.
@semicap Apply made like 30-80 billion in profits for last 15 years. Nothing stopped them from investing like $10B one year into a dedicated DRAM Fab with Micron. Nothing
@semicap We'll see who gets the last laugh.
@semicap Apple had no problem abusing these companies so their own stock price could grow
@semicap Apple can keep buying back shares or build several Fabs to make its own memory and storage. The days of squeezing these suppliers to deliver more profits are over.
@semicap A lot of memory guys went bankrupt and now just three survivors left ✊
@semicap Indeed FAFO for Apple, well deserved
@semicap The party is not going to last longer. If AI bubble burst or even goes through a deep correction- $MU will become one of the most hated companies
@semicap do you think the current LTAs are sustainable?
also do you think that there is could be unseen supply from some other company that can flood the market? (in a way, is it easy to do what memory companies do)
