Samsung Said to be Slashing Graphics Memory Pricing

[malware]

Samsung Electronics is unloading its graphics memory inventory by offering prices that are much lower than competitors' production costs for the segment. DigiTimes claims that Samsung 256Mb (16Mbx16) DDR2 is selling for only US$0.50. Other DRAM makers think that the price is unbelievably low, as typical costs for this type of DDR2 graphics memory chip, from the wafer to back-end production, would usually run about US$1.40. Samsung's low-price move for graphics memory comes as a further blow to Taiwan's DRAM makers, which are already suffering from plunging prices in the commodity DRAM market. Graphics memory provides higher margins than commodity DRAM, but Samsung's move may now trigger a free fall for graphics memory prices. Samsung did not comment on the story.

View at TechPowerUp Main Site

 

[btarunr]

We could see HD 3850 512M prices taking a plummet.

Most board partners using 256MB with their HD3850/8800 GT would make a switch.

 

[jocksteeluk]

I doubt we as the consumer will ever see any benefit of this price reduction, i think Energy efficiency and performance would out weighs saving a few dollars by using DDR2.

 

[ghost101]

Isnt selling below the cost of production illegal. Predatory pricing.

 

[MilkyWay]

probly trying to get rid of stock or force others out of business i mean i cant really see why company wouldnt use ddr3 unless its on a low budget card to keep the price down ive started to see an uptake on gddr4 anyway but apparently already they have gddr5 developed

most likley forcing other out of business

 

[PVTCaboose1337]

Isnt selling below the cost of production illegal. Predatory pricing.

I thought so too.

 

[effmaster]

I thought so too.

It could be that it costs less than $.50 to make these wafers but its just that maybe to increase the other companies profit margins they charge more for them. This is common wherever you go to. This is why (for those of you whoever have gone to Publiux before) Publix brand food is cheaper than the competitors prices because Publix makes its own food and doesnt proceed to sell it to an0other vendor who will inturn sell it to another vendor who will raise the price tag on it

Note using Publix was only an example there are many more to name but to give the easier comparison of the 2 I compared here:

Publix food factories-----goes straight to Publix food stores----Publix sells it straight to you.

Samsung electronics factories-----sells it to AMD or Nvidea----AMD or Nvidea sellit to individual merchandise stores----merchandise stores sell it to you

 

[wazzledoozle]

Begun, the dram wars have.

 

[btarunr]

Also this could benefit the extreme-value segment...the 8400GS, HD2400XT.....remember back when we had the 6200 how suddenly 512MB GDDR2 based boards started to come out?

Also the ASUS PhysX card uses Samsung video-DRAM banks....c'mon ASUS $80 for the PhysX would be sweet.

EDIT...hey what's all this about food grain talk?....we're talking DRAM

 

[Darkrealms]

Isnt selling below the cost of production illegal. Predatory pricing.

Most of these companies used to buy from Samsung and have recently had to find other smaller suppliers. It is possible that it costs Samsung less than $.50 and others more than that. Samsung is one of the largest ram makers.

I think they are trying to get rid of old stock. The best way to do that is to undercut and dump before anyone else can. Now that they are not reselling they probably have a lot of supply on hand to get out quickly.
2¢