Micron Experiments With New Pricing Model: Reuters

• Micron Technology, Inc (NASDAQ:MU) experimented with a new pricing model for its chips called forward pricing agreements, Reuters reports.
• The agreements aim to stabilize the steep price fluctuations that afflict the industry.
• Micron won a top 10 customer on this model with over $500 million a year of revenue for a three-year agreement.
• The forward pricing agreements have both volume and pricing.
• The report noted that Micron does not look to lower its gross margins to push the forward pricing agreements ahead.
• Price Action: MU shares closed higher by 1.12% at $67.71 on Thursday.