In this note, based on Trefis analysis, we provide some takeaways from the performance of the DRAM business, which is the biggest driver of the company’s revenues. DRAM Revenues Trend Lower On Falling PricesMicron has indicated that the per-bit prices of DRAM declined in the low-20% range sequentially, with its overall DRAM revenues declining to around $3.74 billion, down from $5.2 billion in the same period last year. Moreover, unlike NAND memory, which sees some price elasticity of demand, with demand rising in response to falling prices, demand for DRAM chips are relatively inelastic, meaning that the price declines can be sharper. While Micron expects DRAM bit shipments to begin increasing from Q3 FY’19, it expects industry demand growth to be outpaced by supply expansion. Server DRAM prices are projected to fall by between 15% to 20% sequentially.

Source: Forbes March 21, 2019 18:11 UTC