Reportedly, the Taiwanese newspaper, DigiTimes claims that Samsung Electronics may considerably reduce its memory chip product prices next year. The decision taken is to further freeze its market-leading position.
While presently, Samsung Electronics’ share in the worldwide memory chip market is declining gradually. Considering the case of the DRAM market, then its share would fall from 43.5 percent to 40.7 percent in the third quarter of the year.
However, it’s still on the top and has the highest share of the market. While the share of SK Hynix and Micron Technology are nearly close to it. Similarly, Samsung Electronics NAND flash market share falls from 35.3 percent to 33 percent in the second quarter, and furthermore to 31.4 percent in the third quarter respectively.
Many experts have different views. “The global semiconductor sector is already in a recession and Samsung Electronics’ losses will increase if it lowers the prices,” one of them said, adding, “In the memory chip market, it is clients, not suppliers, that determine product prices, and it is unrealistic that any supplier first lowers its product prices.”
Moving ahead, as per some other sources, they also have the same view as the newspaper.
“Price cuts are effective in that the recession will end in the end and inventory and demand conditions will improve,”
One of them pointed out, continuing, “Samsung may go aggressive in that maintaining the highest share in the market is important and it is capable of withstanding the recession until things get better.”
