Micron +4.2%; Samsung reportedly plans to cut PC DRAM output

• Taiwan's Economic Daily News reports Samsung (OTC:SSNLF) plans to cut standard DRAM production by 30%, and shift capacity to mobile DRAM ahead of the iPhone 6S launch. Rival Micron (NASDAQ:MU) is up strongly on a day the Nasdaq is down 0.7%.
• The paper also reports Samsung has notified OEMs it won't be cutting DRAM prices as of August - a move that could lead to higher prices - and (in-line with past reports) that the iPhone 6S will have 2GB of DRAM, up from the 1GB found in the iPhone 6.
• PC DRAM price pressure (caused in no small part by weak PC sales) has been weighing on Micron: The company's DRAM ASP fell 10% Q/Q in FQ3 (the May quarter); FQ4 guidance is for a mid-to-high single-digit drop.
• JPMorgan reported today PC DRAM contract prices fell 15% in July, more than it expected. The industry is hoping Windows 10 (launched last Wednesday to fairly good reviews) will help boost demand.
• Related ticker: OTC:HXSCF