Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc. -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (4607)	3/5/2021 11:07:40 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 4791

It's not as simple as the notion that "rising prices dampens demands." That would occur if demand is elastic, meaning that it is totally dependent on changes in price. In this case it appears that demand is somewhat inelastic. It goes up even in the face of slight increases in price. Or it remains constant even in the face of price cuts, depending on other external economic and political factors. What we do know is that more sophisticated design and better engineered production combine to increase either the profits for a given capacity chip or SSD, or they increase the performance of the components at little or no extra cost. These developments in the long run have added to overall SSD demand. We are also at a point where demand for storage capacity in a given device or in the cloud is increasing at a rate that appears to be well beyond expectations of many analysts. At the same time, we know that profit at the manufacturing level requires operating a plant as close to 100% of capacity as possible, so that any additional sudden demand can create shortages, along with probably temporary increases in unit price. In short, there are a lot of factors to be considered, and how each factor impacts a given manufacturer will vary considerably, making estimates of future profits difficult. Still looks positive to me for WDC. Art