4 ms·

Q&A with Micron's VP and GM of Memory

24 points by zdw 3mo ago

ironbound 3mo ago
Save your time, has Zero details on the DRAM shortages and price hikes.
- rvz 3mo ago
  This is the Micron top signal.
wewewedxfgdf 3mo ago
Here's a question for the VP: "Are memory manufacturers a tight oligopoly engaging in tacit price collusion?"
- jdw64 3mo ago
  Usually, companies like Apple are largely to blame. [1]The memory market is said to be an oligopoly on the supply side, but Apple's low pricing and poor margins led to a halt in industry investment. In fact, there were reports in my country, Korea, that SK Hynix was cutting back on electricity usage.(during the downcycle, that is.) The problem is that while AI has increased memory consumption and brought an upcycle, during the downcycle, mega-buyers like Apple caused various issues, and the production equipment that was scaled back during that time is now leading to supply shortages in the upcycle [2]. Apple fans probably won't admit it, though. The memory industry itself has a characteristic where even a slight drop in demand causes prices to plummet, and even a slight shortage in supply causes prices to skyrocket. Elpida is a classic example. It's a structure where a company that loses in competition simply cannot survive by staying small. [1] https://www.eetimes.com/apple-accused-of-nand-price-manipulation-says-korean-report/ https://www.eetimes.com/apple-accused-of-nand-price-manipula... [2] https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-aggressive-purchasing-tactics-helped-fuel-memory-shortage/ https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-a...
  - m4rtink 3mo ago
    Seems like the problem is that Apple is so big it's putting the market under an unhealthy pressure. Kinda reminds my of big supermarket chains pressuring farmers to sell their stock with low to no margin by being the main buyers. Seems very similar with Apple, using their closed technology to maintain an oligopoly position, which makes them able to pressure suppliers and perverse the market.
  - objclxt 3mo ago
    > Usually, companies like Apple are largely to blame Just as a point of fact, Micron and its peers have in the past operated an illegal cartel that engaged in a price fixing conspiracy to manipulate the cost of RAM. > mega-buyers like Apple caused various issues, and the production equipment that was scaled back during that time is now leading to supply shortages in the upcycle [2]. Apple fans probably won't admit it, though. That's Micron's problem. Nobody held a gun to their heads and made them accept the prices Apple was offering. Micron willingly took those deals.
    - jdw64 3mo ago
      It's true that memory companies formed a cartel in the early 2000s, and I'm not saying the memory companies did nothing wrong. It's just that in the context of the current price surge, the biggest factor varies depending on how you look at it, but hardware manufacturing itself has problems with fixed-cost structures and demand monopolies. It's a problem of sunk costs. If fab utilization drops, losses pile up. In other words, a fab has to run 24/7. So the problem is that if a fab stops running, astronomical losses begin, so it's natural to hesitate in investing in production facilities. And that hesitation is driven by fundamental issues of supply and demand. That's also why memory became expensive. Ultimately, it seems you agree that the current prices were formed by these voluntarily created conditions, right?
    - ksec 3mo ago
      >That's Micron's problem. Nobody held a gun to their heads and made them accept the prices Apple was offering. Micron willingly took those deals. Then they risk losing Apple as a customer, with empty Fabs running which cost them most money. And pile of stock unable to be covered by any other player in the market. The power is over at the buy side. The sell side have very little leverage. Hence they some times come together, and then they were called price fixing.

24 points by zdw 3mo ago

ironbound 3mo ago

Save your time, has Zero details on the DRAM shortages and price hikes.

rvz 3mo ago
This is the Micron top signal.

wewewedxfgdf 3mo ago

Here's a question for the VP: "Are memory manufacturers a tight oligopoly engaging in tacit price collusion?"

jdw64 3mo ago
Usually, companies like Apple are largely to blame. [1]The memory market is said to be an oligopoly on the supply side, but Apple's low pricing and poor margins led to a halt in industry investment. In fact, there were reports in my country, Korea, that SK Hynix was cutting back on electricity usage.(during the downcycle, that is.) The problem is that while AI has increased memory consumption and brought an upcycle, during the downcycle, mega-buyers like Apple caused various issues, and the production equipment that was scaled back during that time is now leading to supply shortages in the upcycle [2]. Apple fans probably won't admit it, though. The memory industry itself has a characteristic where even a slight drop in demand causes prices to plummet, and even a slight shortage in supply causes prices to skyrocket. Elpida is a classic example. It's a structure where a company that loses in competition simply cannot survive by staying small. [1] https://www.eetimes.com/apple-accused-of-nand-price-manipulation-says-korean-report/ https://www.eetimes.com/apple-accused-of-nand-price-manipula... [2] https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-aggressive-purchasing-tactics-helped-fuel-memory-shortage/ https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-a...
- m4rtink 3mo ago
  Seems like the problem is that Apple is so big it's putting the market under an unhealthy pressure. Kinda reminds my of big supermarket chains pressuring farmers to sell their stock with low to no margin by being the main buyers. Seems very similar with Apple, using their closed technology to maintain an oligopoly position, which makes them able to pressure suppliers and perverse the market.
- objclxt 3mo ago
  > Usually, companies like Apple are largely to blame Just as a point of fact, Micron and its peers have in the past operated an illegal cartel that engaged in a price fixing conspiracy to manipulate the cost of RAM. > mega-buyers like Apple caused various issues, and the production equipment that was scaled back during that time is now leading to supply shortages in the upcycle [2]. Apple fans probably won't admit it, though. That's Micron's problem. Nobody held a gun to their heads and made them accept the prices Apple was offering. Micron willingly took those deals.
  - jdw64 3mo ago
    It's true that memory companies formed a cartel in the early 2000s, and I'm not saying the memory companies did nothing wrong. It's just that in the context of the current price surge, the biggest factor varies depending on how you look at it, but hardware manufacturing itself has problems with fixed-cost structures and demand monopolies. It's a problem of sunk costs. If fab utilization drops, losses pile up. In other words, a fab has to run 24/7. So the problem is that if a fab stops running, astronomical losses begin, so it's natural to hesitate in investing in production facilities. And that hesitation is driven by fundamental issues of supply and demand. That's also why memory became expensive. Ultimately, it seems you agree that the current prices were formed by these voluntarily created conditions, right?
  - ksec 3mo ago
    >That's Micron's problem. Nobody held a gun to their heads and made them accept the prices Apple was offering. Micron willingly took those deals. Then they risk losing Apple as a customer, with empty Fabs running which cost them most money. And pile of stock unable to be covered by any other player in the market. The power is over at the buy side. The sell side have very little leverage. Hence they some times come together, and then they were called price fixing.