Micron this week announced financial results for its fourth fiscal quarter and 2011 fiscal year ended September 1, 2011, and the numbers aren't pretty. The company's revenue from DRAM in the third quarter dropped 12 percent compared to Q3, a slump Micron said was the result of declines in the average selling prices. Revenue from sales of NAND flash products picked up some of the slack and grew 11 percent, but doesn't have enough volume to make up for the downturn in DRAM.
There are a number of reasons why Micron's DRAM business is struggling. The biggest one is a continued oversupply of DRAM chips, a situation Micron warned will negatively affect its margins going forward, Reuters reports. Lower than expected PC sales growth is also playing a role.