Attention focusing on Samsung Electronics’ memory pricing policy

Taiwanese newspaper DigiTimes reported that Samsung Electronics may substantially lower its memory chip product prices next year in order to further solidify its market leading position.

At present, Samsung Electronics’ share in the global memory chip market is gradually falling. For example, its DRAM market share fell from 43.5 percent to 40.7 percent in the third quarter. Although it still has the highest share in the market, the shares of SK Hynix and Micron Technology are close to it. Likewise, Samsung Electronics’ NAND flash market share fell from 35.3 percent to 33 percent in the second quarter and to 31.4 percent in the third.

Many experts have a different view. “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.”

Others 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.” Business Korea