Micron Technology Inc, the United States chipmakers on Tuesday gave their profit forecast and quarterly sales well before the Wall Street estimates could come out.
It cited a market flood of memory chips as the business demands and consumers for computers and phones are decreasing at an alarming rate.
Micron announced that it was expecting an industrial output including from south rivals SK Hynix and Samsung Electronics Co Ltd, so as to outpace the demands from the markets of PC’s and servers and phones further pushing down the prices of Micron chips.
Samsung has already raised a warning against the decline in demands and the price drop of chips, clearly flagging an inevitable end to a 2 year boom in memory chips because of the global demand for electronic devices and mobile phones had waned and the new, fresh supplies from Toshiba and Hynix have already hit the market.
A downbeat outlook has been offered by Hynix as well.
On a conference call on Tuesday, the Chief Executive of Micron Mr. Sanjay Mehrotra informed the investors that the company was taking decisive measures towards reducing the production output so as to hold the line of prices.
Mr. Sanjay Mehrotra proudly announced in an interview that the company is always reviewing best possible ways of aligning their outputs with the demands in the market and so as to deliver healthy profitability.
However the gult will push the hammer the company in the short term and the Micron is estimating revenue in the range of 5.7 billion dollars to 6.3 billion dollars for the fiscal 2nd quarter.
Hynix shares went down by 1.6 percent trading in South Korea in the late morning while Samsung shares were slightly raised up.
The present respond of Micron on the overflowing supply of DRAM and NAND is the greater investment in the next generation of chips.
Source: Reuters, Wall Street Journal
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