Netflix (NFLX) announced its 3Q14 earnings on October 15. The results disappointed investors, as they came in short of expectations.
SanDisk earned a 51% gross margin in 2Q14. This suggests there is still room for improvement in Micron’s margins as it shifts its focus towards TLC NAND.
Here, a key point to consider is the significant expense of retiring convertible debt when stocks prices are increasing, as is the case with Micron. The company does not pay dividends.
These drivers have created an abundance of opportunities and also pressures to deliver web-based solutions. This has led to the boom in data centers and servers requiring massive storage capabilities.
The semiconductor industry requires huge investments, making it a capital-intensive industry. On average, equipment needs to be replaced each three to five-year time period.
These improvements require larger capacities for both code and data storage and significantly faster erase and write times. NAND offers both of these at relatively low cost.
Micron offers both parallel and serial-interface NOR flash products. These NOR products offer high densities, XiP performance, architectural flexibility, and are highly reliable in demanding industrial settings.
Micron sells company-branded SSDs, as well as components to third-party manufacturers of SSDs. Together, these sales represent ~45% of Micron’s NAND business, ~10% of which is smartphone market-specific.
These products offer higher performance, reduced power consumption, and better reliability when compared to traditional hard disk drives. This explains the product’s popularity and rapid proliferation as a data storage medium.
Samsung is expected to initiate manufacturing of DRAM wafers by the end of 2014, with a focus on PC DRAM. In the second half of 2015, its maximum S3 DRAM capacity is expected to reach 60,000 per month.
When Microchip Technology Inc. announced an inventory correction in the chip industry on October 10, 2014, semi-conductor stocks including Intel Corporation, Texas Instruments Incorporated, and others fell
Information technology researcher Gartner expects the smartphone market to grow at an average rate of 10% in the next five years. And, the PC market will continue to decline during that period.
In 4Q2014, DRAM contributed 68% to Micron’s overall revenues. As the chart above shows, DRAM’s contribution to overall revenues is increasing on a year-over-year basis.
According to information technology research company Gartner, Micron held tenth position in the worldwide semiconductor market in 2012.
The main reason why the iPhone 6’s success is so important for Apple is that the iPhone constituted around 53% of Apple’s overall revenues.
Now, in a recent statement, Icahn says he believes that Apple’s stock is dramatically undervalued and is actually trading at half of its intrinsic value
But things have changed over the last few months, which could have forced eBay’s management to spin offPayPal. It’s true that eBay wasn’t able to grow either its e-commerce business or its payments processing business.
Apple is negotiating with music labels to lower the pricing structure in order to allow it to sell its music streaming service to users at a lower price.
Earlier this year, Apple (AAPL) made its largest-ever acquisition, buying Beats Music and Beats Electronics for $3 billion. Apple made this acquisition in order to to enter the streaming music market.
Within this market, Apple (AAPL) is now the fifth largest player. It has broken into the list of the top five players for the first time ever.