Friday, November 2nd 2018
Samsung Cuts CAPEX by a Quarter, Calls it an "End of the Chip Boom"
Samsung Electronics Wednesday slashed its capital expenditure (capex) by a quarter, which could significantly reduce its NAND flash chip output, and raise NAND flash prices back to profitability for the company, although not anytime soon. This could herald a rise in SSD prices around this time next year, although they partly contradict analyses that predict further slides in NAND flash prices through 2019, as the advent of 96-layer 3D QLC NAND flash by every major player would add to swelling inventories in the market. If you'll recall, Samsung reportedly desires DRAM prices to remain high and establish current high DRAM prices as a new normal. The company went as far as to further reduce its DRAM output, just so supplies of DRAM in the market remain low. The company remarked that acceleration in NAND flash price-drops signifies an end of the "boom" in NAND flash chip demand that fueled growth over the past two years, as justification to its capex cuts.
Source:
Reuters
12 Comments on Samsung Cuts CAPEX by a Quarter, Calls it an "End of the Chip Boom"
I fully understand that there's a point where these companies need to be in terms pricing, but this is pure greed. I have nothing against them making a profit, but due to just about every single large company out there gambling with their shares on the stock market, they have to appease their investors and show a huge growth every year, or their stock prices plummet. This is why we're seeing higher and higher prices every year. Just look at Intel, Nvidia, Apple and so on for some very simple examples. Yes, some of their new products are more complex and more costly to manufacture, but at some point their customers are going to say FU as well and go elsewhere, as things simply get too expensive.
They all seam to be lowering their output and not investing as much in equipment
It's a wonder why they even bother pretending anymore.
P.S. i don't belive all company agree to cut, someone is "leak" and then Boom, capitalism.