Why Micron Technology Had Less Than Stellar Results

Micron Technology announced it would decrease its staff by nearly 10% over the next year and halt bonus payouts, among other measures. In addition, it provided a poor revenue projection for the present quarter, which suggested the decline in demand for computer components may persist. On Bloomberg Technology, Paula Penkal of Bloomberg Intelligence deconstructs Micron Technology’s numbers. The semiconductor industry, of which Micron Technology is a part, has been severely impacted by global events. The supply issues currently affecting businesses like Apple (AAPL) are primarily the result of disruptions in China. If companies like Apple are not producing products, they are not ordering chips.

The company had a less-than-stellar last quarter, posting a more significant loss than analysts had predicted. Furthermore, the company is forecasting more considerable losses moving forward. A significant drop in the anticipated CAPEX over the following few years is a part of Micron’s general budget cuts. The supply outlook for chips will shift early next year if more companies in the sector follow suit, which is likely to happen.

The post Why Micron Technology Had Less Than Stellar Results appeared first on AITS CAI’s Accelerating IT Success.

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