Monday, April 8th 2019
Samsung Profits Tank as DRAM, NAND Flash, and SoC Prices Slump
Samsung Electronics Q1-2019 preliminary reads like a horror story to investors, as the company posted its worst drop in operating-profit in over four years. Operating income fell 60 percent in the quarter ending March 2019, to about USD $5.5 billion, beating Bloomberg analysts who had predicted a 56 percent drop. Sluggish sales to IoT major Amazon, smartphone major Apple, and other handset makers, compounded by swelling inventory in the supply chain, has triggered sharp drops in DRAM prices that were offsetting critically low NAND flash prices. Demand for Samsung SoCs (application processors) is also on the decline.
Samsung is betting heavily on the success of its Galaxy S10 family of smartphones to recover from losses faced in the three component markets. Prices of DRAM prices fell 22 percent YoY, and NAND flash continues to slide by roughly that much, at 23 percent. NAND flash prices have been on a continuous decline over the past 3 years. DRAM prices, on the other hand, rallied in that period, and it's only now that it posted its first price-drop since 2016. NAND flash prices are expected to slide further down, as oversupply and failure of newer technologies like QLC taking off, hurt NAND flash manufacturers.
Source:
Bloomberg
Samsung is betting heavily on the success of its Galaxy S10 family of smartphones to recover from losses faced in the three component markets. Prices of DRAM prices fell 22 percent YoY, and NAND flash continues to slide by roughly that much, at 23 percent. NAND flash prices have been on a continuous decline over the past 3 years. DRAM prices, on the other hand, rallied in that period, and it's only now that it posted its first price-drop since 2016. NAND flash prices are expected to slide further down, as oversupply and failure of newer technologies like QLC taking off, hurt NAND flash manufacturers.
15 Comments on Samsung Profits Tank as DRAM, NAND Flash, and SoC Prices Slump
Samsung bosses and the others participants are crying because their precious price syndicate was caught with their hand in the cookie jar ripping off the whole world making billions of dollars extra on over priced memory and now the good times are over.
Price syndicates should count as international organized crime when they during an extended period of time systematically and globally rips off billions of dollars in inflated prices, a crime that should carry a 20+ years punishment in prison.
Since these price syndicates are border less and effect the economy of the whole world participants should be punished by the International Court of Justice in The Hauge so they can not be protected and/or escape justice, just like we do with war criminals.
That would make the bosses giving the orders think twice before creating in a price syndicate.
@fynxer those upper crooks won't go to jail for committing crimes, they'll just find a low-rank accomplice & puts them in jail for no reason to "save face".
Also have a hard time believing a lower level guy in a company like Samsung are able to create a multinational price syndicate with several other major manufacturers with out the boss knowing about it.
Now, I just have to wait a bit longer for some extra price drops...
And it is not like Samsung is gonna roll over because of this.
What gives?!
Their stupid phone prices are what's killing them. They keep jacking everyone for phones like they are and they'll keep failing. Just a small percentage of the wealthy are never gonna be able to keep them afloat. They have to lower their prices or die in this world market.
It's brand new in the box and works a heck of a lot better than my old S4 Galaxy did. I took the 128GB flash card from the Samsung phone and transferred it to the LG.
I like the way Android is implemented on the LG, and I love the low price for getting a better phone.