Q&A with Micron's VP and GM of Memory

It's just that in the context of the current price surge, the biggest factor varies depending on how you look at it, but hardware manufacturing itself has problems with fixed-cost structures and demand monopolies. It's a problem of sunk costs. If fab utilization drops, losses pile up. In other words, a fab has to run 24/7.

So the problem is that if a fab stops running, astronomical losses begin, so it's natural to hesitate in investing in production facilities. And that hesitation is driven by fundamental issues of supply and demand. That's also why memory became expensive.

Ultimately, it seems you agree that the current prices were formed by these voluntarily created conditions, right?

Then they risk losing Apple as a customer, with empty Fabs running which cost them most money. And pile of stock unable to be covered by any other player in the market.

The power is over at the buy side. The sell side have very little leverage. Hence they some times come together, and then they were called price fixing.

They are the largest customer. You don't annoy you largest customer. DRAM manufacture don't care whether the RAM are for Laptop or Phone. And Samsung + Apple combined is nearly 50% of the phone market. The rest are split up between many Chinese companies.

It may be surprising to some having a short / long term contract of DRAM may actually be more expensive than spot price of DRAM. Smaller manufacture likes to take advantage of spot price, since their shipment are usually volatile. Compare to Apple which has been shipping their products and selling them like clock work. Hence Apple will need these contract signed to have guarantee of supply.

And when you are the largest customer for all three DRAM manufactures, they get to play the game better than anyone else.

There are also cases where other companies back consumer lawsuits, right? In the end, I don't think it's too late even after a verdict comes out, but you might think differently. Here's my take:

In any case, both Apple and Micron are corporations. Both are capitalists, so they're not virtuous and they act in their own self-interest. The question is which side should bear more responsibility.

In my case, I think Apple bears more responsibility. You, on the other hand, seem to think the supplier's responsibility is greater. Either way, I respect your opinion.