Sales from Micron's Two Primary divisions (1) Core DRAM, and (2) NAND Flash Memory, are expected to contribute roughly $15.8 billion (66.5%) and $6.7 billion (28%) to its Total Revenue estimate of $23.8 billion for FY '19, with revenue from NOR and 3-D XPoint Products making up the remaining $1.3 billion (5.5%)
2019E Revenue Breakdown:
Core DRAM = 66.5%NAND Flash = 28%Other (NOR and 3-D XPoint) = 5.5%
Note: Micron's fiscal year ends in August.
Micron's Business Model
What Need Does It Serve?
Providing faster memory and data transfer speeds: Micron manufactures memory devices, primarily dynamic random access memory (DRAM) for PCs and mobile devices, and flash memory (both NAND and NOR) for use in storage applications in mobile phones, SSDs, and related products.
... while keeping cost and power consumption in check: A lot of Micron's memory devices are used in smartphones and USB drives, that are relatively low power devices, and hence require the memory chips to not be very power-consuming. Micron's devices are able to achieve low power consumption, and are also pocket-friendly.
Has Three Operating Segments-
1) Core DRAM: The DRAM division sells Dynamic Random Access Memory (DRAM) for use in PCs, notebooks and servers. DRAM is sold to OEMs (Original Equipment Manufacturers) who manufacture these computing devices.
2) NAND Flash: This division sells NAND flash memory primarily for use in Solid state Drives (SSDs), USB devices, and digital cameras. NAND memory is used in mass-storage devices due to its low cost and fast transfer rates.
3) Other (NOR and 3-D XPoint): NOR flash is the base memory on a mobile phone or tablet and is ideal for storing program code in wireless and embedded devices.
What are the alternatives?
Memory Semiconductor Industry: The company faces intense competition from Samsung and SK Hynix in both DRAM and NAND Flash. Toshiba and SanDisk are other major competitors in DRAM and NAND Flash respectively.
What is the basis of competition?
As DRAM and NAND are both commodities, customers care most about the price or the cost per bit.
Besides this, competition is also based on write and erase times, memory density, and power consumption.
Micron's Total Revenue rose 145% from $12.4 billion in 2016 to around $30.4 billion in 2018, but we expect it to drop to about $25.5 billion by 2020, on the back of an ongoing supply glut in the DRAM and NAND markets
% Change in Total Revenue
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