Micron Experiments With New Pricing Model: Reuters

Micron Technology, Inc 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.