News

Micron Forecasts Surprise Loss In Current Quarter

Being one of the biggest DRAM and NAND manufacturers in the market, Micron have chugged along steadily, with the rise of smartphones and tablets helping offset the losses on the PC side. This is set to change very soon though with them forecasting a loss in the current quarter (Q4 2015), the first in a long while. The loss comes due to the naturally weak first quarter of the year, increased investments, pricing pressure and low demand.

Overall, they are expecting to lose between $50 to $120 million, or about 5-12 cents per share. This comes as revenues are expected to fall about $200 million short of analysts expectations. This comes after the company have made a number of acquisitions including Tidal Systems for their SSD controller and Inotera for their DRAM business. Micron is also investing heavily into TLC NAND, 3D XPoint and 3D NAND so it’s not as bad as it first may seem as the investments will hamper their fiscal results, but ultimately should pay off if the investments go as expected.

Coupled with the expected low PC demand, they are also facing heavy pricing pressure from competitors that has led huge price drops for both SSDs and DDR4 over the past few months. This is great news for consumers making DDR4 based systems much more affordable and open to a mini price-war involving Micron and their competitors. With increasing expenses in a time of falling revenues, it’s not surprising that Micron is facing some immediate trouble. The incoming investments though should help bump Micron back into the black soon enough and we will be monitoring this story closely as it develops in the near future.

Do you own any Micron products yourself? The company portfolio includes Crucial for consumer based memory and storage, Micron themselves for enterprise and business class products and Lexar Media who manufacturer flash memory for cameras and recording equipment.

Samuel Wan

Samuel joined eTeknix in 2015 after becoming engrossed in technology and PC hardware. With his passion for gaming and hardware, tech writing was the logical step to share the latest news with the world. When he’s not busy dreaming about the latest hardware, he enjoys gaming, music, camping and reading.

Disqus Comments Loading...

Recent Posts

Nintendo Cuts Switch Sales Forecast as Demand Slows Amid Anticipation for Successor

Today, Nintendo has released some notable sales news for the last quarter, with multiple games…

8 hours ago

Resident Evil 9 Rumored to Feature Jill Valentine and Leon S. Kennedy as Main Characters

This year, fans of Capcom franchises have been very happy, because during one of the…

9 hours ago

Corsair Launches MP700 ELITE Series PCIe 5.0 M.2 SSDs

Corsair has unveiled the MP700 ELITE series, their latest PCIe 5.0 SSDs, now available for…

9 hours ago

US Considers Merger Between Intel and AMD to Counter Intel’s Decline

The bad times that Intel is going through have given rise to news and information…

9 hours ago

AMD Ryzen AI 300 Now Supports LPDDR5X-8000 Memory

The arrival of the AMD Ryzen AI 300 processors, codenamed Strix Point, initially came with…

9 hours ago

In the 90s, Nintendo Was So Popular Every Gaming Product Was Called ‘Nintendo’

In the 90s, "Nintendo" became almost a universal term for any gaming console, much like…

9 hours ago