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Activity missed all the Intel fun yesterday Intel reported earnings last night now here's the interesting part about -- it said that its revenue results missed the midpoint of its guidance.
Solely because of the Flash Memory market.
The company has long partnered with Micron Technology on that specific technology which is used in Smartphones and tablets and PCs so.
What does the weakness mean for the industry and in tells partners.
With us now we're so happy to happen in a Fox Business exclusive is Mark Adams he's the president of Micron Technology good to see -- thank you for being here.
Hi thanks for having me.
Well -- -- followed micron for a long time because -- this hyping specific company so specific that Intel partner with you mean they're the smartest guys in the room on a lot of levels but.
Cut to all the businesses look first at a macro global picture.
From an economy standpoint.
Should be no news to.
Of the rest of -- that the the global economy's just chug along it's -- certainly some.
Tough areas in terms of geographic economic growth and we're even seeing that to extend -- China where there's it the growth seems to be slowing just a bit as well.
And note how it affects our industries that it seems that the consolidation path that we've been on for some time.
Is is playing out in front of a similar we're we're trying to take advantage of that.
Will it it's important I think for our viewers to know because 84%.
Of your sales come ex US outside of the US so.
I guess the obvious question here yeah where do you see the strengthening.
Who -- is buying your technology in your products.
Well -- that's -- good question.
You know despite you know that the global economy limping along there are some key areas of growth for us and and where memories extending today.
One I would say is certainly mobility.
A second -- as the cloud computing.
Dynamic as well as the data center infrastructure growth.
Around memory products you know one of the things that's pretty funny is that most people and they think about memory they immediately go to PC memory.
PC memory for micron makes up less than a quarter of our overall capacity where we're going into a broader new set of applications.
Well I'm I'm assuming mobile which is of course tablets and Smartphones and you you acquired LP does.
And that technology is inside apple now you have partnerships with apple before but does this really give you -- sort of establish a beachhead for you and everybody wants that apple relationship.
Well sure you know the apple relationships very strategic for a lot lot of us in the chip industry.
You know one of the things that -- Peta has done for us is it will give us a sense of scale that gives us the ability to grow our business in ways we have not been able to invest in the past.
And that capacity we get -- -- -- very much with the companies like apple in terms of serving those businesses.
Look Intel noted that flash the Flash Memory market is markedly weaker and we all know that there is really a lot of excess supply.
What can you do if anything to -- out that excess supply.
Well I think -- the flat side we we remain very bullish there's a number of applications that -- -- taking on flash.
I think there and Flash Memory we saw a bit -- they.
A -- -- over the last ninety days primarily driven by -- and over optimism and the SSD market and that was.
Because by the Thailand flooding in the fall.
Where the OEMs were trying to push SSDs as a replacement for the hard -- shortfall.
And the consumers and really the businesses didn't buy and the level of the OEMs were hoping.
And and it caused a bit of an inventory glut in the -- We think flash.
Is is still pretty good market for -- and despite that and the -- -- -- -- conditions within that's playing out right now and that.
Pricing -- improved here and the coming quarter in the back cavity -- -- calendar year.
Listen should we read it in to the fact that what you just said minute or two ago and that is that your PC memory is really not anywhere near the biggest part of your business now are we all at some point.
Can be dumping our PCs and simply going to tablets.
Well I've seen industry -- talk about tablets.
Being about equal share.
By the year 2016.
It's certainly interesting dynamic when you think about.
What to tomorrow's generation of kids and and Smartphones and how they're interacting with data -- say when you go an airplane today you see people.
Using -- -- that of notebooks so I think there's definitely different level engagement on the client side of how people access data.
And I think we'll continue to see invention and new applications around that so yeah I think the PC will become less.
Less of a share of how we interact.
Good to see you mark we've come that visit us one -- in New York we'd love to see you guys.
Absolutely thank you for having me any time Mark Adams is the president of Micron Technology and.
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