Micron Affirms DDR4 Production Ramp During May Quarter – Apple’s 2014 Hardware Still in Play

Posted: April 4, 2014 by mattmargolis24 in Apple Investor Information, Micron Technology
Tags: , , , , ,

Micron delivered their Q2 2014 results today and also reaffirmed that they will begin to ramp up volume production of their DDR4 memory chips during the quarter ending May 2014.  Additionally, Micron also reminded investors they received a $250m deposit from a customer in Q1 2014 associated with a long-term DRAM supply agreement.  Micron’s CEO and CFO both indicated that DRAM inventory is currently “very tight” and it seems more clear that Apple made the $250m deposit was made to secure a multiyear supply of DRAM memory chips that will be very difficult for customers to get their hands on.

I recently put together substantial evidence that Apple was going to showcase Micron’s LPDDR4 DRAM memory across Apple’s 2014 Hardware portfolio.  The comments today from Micron’s management confirmed they will begin to ramp up production of their DDR4 chip by the end of May.  The ramp timing  continues to support my thesis that the DDR4 chip will make its way into the iPhone 6 that will begin to be manufactured in May according to recent reports.  My previous conclusion is below:

Conclusion – Micron’s LPDDR4 DRAM Memory will Arrive on Apple’s Hardware in 2014

Apple is a current DRAM customer of Micron Technology, having last used Micron’s LPDDR3 DRAM memory in 2013.  Micron presented detailed benefits and product highlights regarding their LPDDR4 DRAM Memory technology almost a year ago.  Furthermore, just yesterday Micron’s Vice President of Wireless Solutions Marketing published an article highlighting the benefits of Micron’s next generation DRAM LPDDR4, which tells me this technology is ready for the big show.   Lastly, Micron received a mystery payment of $250m from one customer that was reported during their Q1 2014 conference call and their 10-Q indicates that the payment was  “for product to be supplied through September 2016″.

Apple is in an arm’s race to improve the performance of their mobile, tablet and ultrabook devices and improve overall battery life.   There appears to be little doubt that Apple is going to be showing off Micron’s LPDDR4 DRAM memory across their 2014 iPhones, Macbook and Tablets.  You can take my word for it that Apple users are going to love how “lightning quick” the 2014 devices will be compared to the 2013 devices.

 

Full Disclosure: I am long Micron and have no plans to buy or sell any holdings in the next 72 hours.

Advertisements
Comments
  1. Huddy says:

    Thanks for all the info. I am heavily invested in GTAT and MU. Just wanted to say keep it coming!

    Like

  2. Huddy says:

    Also Matt I had one quick question. Did you see the post by Motley Fool about no sapphire in the iphone 6? Would love to hear your thoughts on this? Also if only the iwatch had sapphire how would that change your targets? Thanks again for all the work. Look forward to your response

    Like

  3. Micronfan says:

    Its not just about LPDDR4. Mobile dram will go into allocation in a few weeks. Market EXPECTS over 100 million LTE phones in China this year – most of which will require DRAM content to go up to support LTE. Micron reduced bit supply for DRAM industry. Mobile dram chips are 10% larger for same Gigabytes. Look into this!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s