Toshiba Cuts NAND Flash Production By 30 Percent To Combat Plummeting Prices

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ultrapain

Meh - if only Greenspan had this same view when the housing market was blowing up 7 years ago. I'm glad to see NAND technology have so much traction and SSD prices come down to Earth. Thanks to that, every computer in my house now has at least an SSD boot drive. Eventually mechanical drives will be obsolete, and between now and then, SSD drive prices will continue to come down. I don't have a problem with this move. I'd love to see SSD prices continue to fall for my own personal gain, and I'm not sure that bringing prices up in a down global economy is the smartest thing, but I'm not a CFO so I don't have the same perspective as those making these decisions. I know one thing, I'm scooping up a few more before prices hike way back up!

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ApathyCurve

Looks like somebody failed Econ101. Supply-side constriction is effective at only one thing: running yourself out of business. Unless of course you can get all your competitors to do the same, but that's called collusion, and it'll get you a long-term stay in a very small room with a hairy and well-endowed roommate.

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vrmlbasic

Instead of constricting the supply, why not increase it to lower the costs to enable a plethora of devices made from their products to be sold at-profit?

I'm not seeing it so much as a problem of supply exceeding demand as that the product is not priced to what the consumers will pay. Looking at it this way, making their products _more_ expensive seems shortsighted and to be a blunder.

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ocnier

The thing that kills me is that SSD prices are falling regardless. When they hit 50 cents a gig which hopefully is sooner than later then they will really become ubiquitous and start flying off the shelves (IMO). Toshiba is blowing a strong lead for greed..... Fail....

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warptek2010

Now if I was say... Samsung or Micron, I would increase production 35%, lower the price to undercut Toshiba and you can guess what happens next.

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sundropdrinker3

I love how people cry foul whenever something like this happens, especially when they don't know business.

Here's the thing people: stop buying Toshiba's Nand products, and when they have a very large supply, then the prices will be cut so that the product will be sold. Toshiba doesn't make their money until the product is sold.

This will actually HELP the other companies, as Toshiba's crap will be priced higher and the other companies can keep their prices the same, or maybe just go up a little bit.

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tekknyne

Keep clinging to your freshman-level-econ-class understanding of 'business'. By the way, Ronald Reagan called from the 1980's. He wants to talk to you about supply-side economics.

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t.y.wan

I don't think it's that bad...
It's like producing less USB2.0 devices but up the USB3.0 devices...
You can't just expect prices to fall and fall and have ridiculous prices...

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Dxcv

Isn't that a form of price fixing? Other manufacturers are expirencing decreased sales compared to Toshiba, so they conspire to cut production and drive up costs.

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Brad Chacos

Price fixing takes more than one company actively conspiring to alter prices in concert. Toshiba is acting singly and is changing its production schedule to hopefully balance supply/demand, a totally different beast altogether.

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kevaskous

No just their greed.

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Shadow Death

So, let me get this straight. Supply and demand in Toshiba's eyes means... "WOW prices are too low.. let's cut the supply and drive up the demand allowing us to charge more money!" Wouldn't that be considered Monopolizing the market and by extension the economy?

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tekknyne

Look, you're really in the wrong country if you think free-market principles are at all relevant in a time when government and business are so deeply in bed with eachother.

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Refuge88

I'm not sure you used the proper word, as this has nothing to do with Monopolizing the market.

That would be Toshiba flooding the market to drop prices soo low its competitors go out of business and then when they do cut production down and jack up the prices.

This is just a legal form of Market Manipulation, nothing illegal and nothing wrong. Its honestly nothing different then what the goverment does constantly. Stimulus packages, tax breaks, tax hikes, ect. ect.

We don't like it, but this is one of those things that is all about the perspective.

To us? We are being forced to pay more.

To them? They are making the proper business decision, which is why those people are where they are. They woulnd't be there if they couldn't make proper business decisions.

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Happy

Define "proper". Because in this context proper sure as hell doesn't mean moral.

P.S. Like Jim Cramer once said, "good mergers are often about getting rid of the competition and screwing the customer." This is the problem with capitalism, it's survival of the fittest, which is great, well, great until (like Highlander) there remains only one. Then it's not so great anymore (for the consumer).

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warptek2010

Competition can also serve to get out a better product, spur innovation and re-invention. It's supposed to be a healthy thing and not something to fear. I suggest you read Adam Smith and not listen to Cramer concerning basic market economy principles. He can be a bit melodramatic.

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Refuge88

You already defined it my friend, the proper business decision is never about morals or personal feelings/beliefs.

Its all about the #'s.

I didn't say I liked it but then again, as mentioned above it all comes down to perspective.

From ours? This blows, I agree.

From theirs? Its upping their profits and making their investors happy which in turn makes them alot more money.

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sundropdrinker3

And keep in mind, by "investors" you also mean people that own stock in their company. People with retirement funds more than likely have a few shares of their stock, even if they don't know it.

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Refuge88

Yes, but I don't believe I've heard the real life story of the 80 year old fogey with 3 shares in the major billion dollar company attenting a meeting and giving an inspirational speech to make everyone feel all warm and fuzzy inside thusly putting the customer first for the first time in I don't know how long.

Could you point me in that direction? I've been in need of a fairytale.

Unless that wasn't what point you were trying to make and that putting the investors first means the average Joe, in which case Joe is just the bug riding along on the speeding car going down the highway. They don't care about him, especially because he probably has no idea whats going on and if he does probably won't sell the stock because he is pissed but rather hang on to it to make money off of it still.

Possibly to offset the rise in his RAM kit. ;P

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