Memory-maker Micron has found a way to keep prices for its products sky-high for another five years, by signing 16 “strategic customer agreements” (SCAs) that include a floor price the company says comes with “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
Micron CEO, president and chairman Sanjay Mehrotra explained the SCAs in prepared remarks delivered during the company’s Q3 earnings call. He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.
I would prefer not to dox myself, but I’m from Europe.
What I’m trying to say here is that more competition in a so oligopolistic market would helps bring prices down. I’m not licking China boots here, it could have been even the brits I don’t care.
No one is saying that’s wrong.
I’m saying that those companies wouldn’t stop making something with a $1k profit per unit to make something with a $100 profit per unit product.
Consumers will never be willing/able to pay the prices datacenters will pay.
For companies to start switching back to consumer ram. Either the AI bubble needs to burst so demand goes away, or consumers have to be desperate enough to see our prices keep skyrocketing.
They may even know the bubble will burst, at least understand that they won’t keep being built at this rate. But it costs money to switch, there is zero reason to switch before that math changes, because it’s a relatively quick and easy switch.
Like…
What aren’t people understanding here?
Look, I’m no one. So here’s someone:
Since they have no enterprice contractors they must still get known. The point is they can’t just prentend to be bigs and sell to datacenters. They are still catching up. This results in trying to enter FIRSTLY the consumer market (which doesn’t mean deadly low prices). After that of course datacenters will start buy from them, but from now (as far as I know) only Corsair started buying from them.
If you got more questions, please refer to internet.
I don’t have questions, but you should read your own link…
What’s preventing them.from Data center contracts is they lack the scalability…
If they develop the scalability to make a dent in consumer RAM, they now have the ability to get datacenter contracts.
The only question is if they’ll pay to build up that missing architecture, or if a data center contract will come with the build out costs included.
You’re looking at an apple falling out of a tree and expecting it to blast straight thru to the other side of the planet.
You don’t understand any of this, but weirdly think you’re helping people…
Re-read my first comment