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Thread: OCZ sold to Seagate for $1 billion

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    Default Re: OCZ sold to Seagate for $1 billion

    Quote Originally Posted by Cyberburnout View Post
    You dont think the buyer of those parts have any sway on production? They are the major distribution channels for those parts. WD and Seagate has a lot more pull in the overall market then you giving them credit for. Say the prices for ssd are going down because the market has been flooded with memory chips used to make ssds. WD and Seagate has two options to slow the fall or stagnant the market. Tell the manufacturers to slow production causing supplies in the chain to dry up slowing the fall of prices or option 2. Buy all supply in the chain still having the same effect as option one.

    Example: Toshiba Cuts NAND Flash Production by 30 Percent 7/27/12
    " Toshiba has just announced a drastic production cut for flash memory devices. Responding to deteriorating market conditions, weak pricing as well as an oversupply of flash memory in the market, the world's second largest flash maker said that it is scaling ..."

    This is exactly how major players like seagate and wd adds pressure to market pricing in their favor. think Toshiba did that on their own accord without a phone call from other players who will also be following suit.
    This was in the works a month ago. They did this to increase margins on platter drives

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    Quote Originally Posted by PC_User View Post
    Tobisha / Intel / Micron / Samsung / Marvell / LSI- Sandforce, Control the SSD market without these parts no one can make SSDs How do you guys figure Seagate will control the market?
    Oh marvell makes only the controllers. Its Nand flash that is the driving force when it comes to price. Intel and micron are one and the same when it comes to nand flash. Its a joint r&d and manufacturing deal.

    So for Nand there is really only Toshiba, Samsung, Micron and hynix counted as majors. Wd and Seagate can put pressure on one to decrease production and prices stabilize or increase due to the increased market demand but decreasing supplies in the chain.
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    Quote Originally Posted by Drdeath View Post
    This was in the works a month ago. They did this to increase margins on platter drives
    It was an example on how prices are regulated. Nothing to do with time frame or platter drives. But your statement on why they did it kind of prove what i was talking about. Suck up supply to increase margins.
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