for some reason not able to respond to specific message:
they don't see building of inventories and PC DRAM supply/demand is healthy relative to PC demand IOW it's now adjusted to (weak) PC demand. DRAM content growth per box slowed down and was another reason for over capacity.
PC demand is fair but it's not falling off the cliff - I noticed the (UBS?) analyst tried to get confirmation from Micron that PC demand is very weak. (the weasel tried to get confirmation from Micron for his most recent Intel call)
Now everybody knows by now that PC demand is not great but maybe not as bad as some analysts claim.
A 20% increase in contract pricing is pretty radical - I believe they are negotiated every 2 weeks (last updated 3/15) - so there is increasing unit demand and chance PC market is bottoming out
The memory business has become very, very complex - 20 years ago there was probably a perfect correlation with PC demand but this has changed.
Yeah. I'd like to just reinforce the point I touched on a little earlier, which is a mobile DRAM part is not necessarily perishable to a PC DRAM part and vice versa. So as we look at the overall market, both mobile DRAM and PC DRAM are pretty healthy right now. But having said that, as you think about the market conditions, even though the PC unit growth is not -- has been projected to be low single digit to flat year-over-year, it's in pretty good balance right now. The PC market is not oversupplied as we sit here today in March. And so and the mobile market is pretty hot. But we're watching that balance because as manufacturers we have to call it right to keep the balance in good favor and that's what I think helping us both in the PC space. It’s not that end user demand for PCs are up, it's just the economics of supply and demand are providing a pretty favorable business for us in PC.
I am kind of wondering what the analysts will do because they have painted a very dour outlook for PC sales in general and chip demand. I haven't had time to go through the Micron numbers but it seems to me that based on my quick glance of the Micron numbers, hardware sales may not be quite as bad as the drive by analysts have painted. Of particular interest to me is NAND sales now, NAND can go in a variety of products but it goes into SSD products. Intel has a partnership with Micron in NAND production and virtually unmentioned by the analysts and media is the fact that INTC has a very good budding SSD market. Eventually it is anticipated that SSD's will replace hard drives in the future and SSD sales are rocketing. Now I am not sure what impact this will have on Intels's numbers but I can guess that it will be very positive.