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
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15 Comments on Samsung Profits Tank as DRAM, NAND Flash, and SoC Prices Slump

#1
fynxer
What artificially goes up must in the end come down.

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.
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#2
Tsukiyomi91
that's what you get for committing price-fixing. XDD Artificially inflating the prices while "reserving" supply is obviously going to backfire real bad. Now their profit margin has fallen 60%. Good job to you, corpo a-holes, you played yourselves yet again.

@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".
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#3
kastriot
Not to mention 2000$ foldable phone..
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#4
fynxer
Tsukiyomi91, post: 4026925, member: 129086"
that's what you get for committing price-fixing. XDD Artificially inflating the prices while "reserving" supply is obviously going to backfire real bad. Now their profit margin has fallen 60%. Good job to you, corpo a-holes, you played yourselves yet again.

@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".
That is why only the topp boss should be held accountable for price syndicates so they can not create lower level scapegoats, some thing along the line we do with war criminals, the people that gives the orders are the guilty party and are punished.

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.
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#5
windwhirl
*insert Darth Sidious laugh here*

Now, I just have to wait a bit longer for some extra price drops...
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#6
tigger
I'm the only one
:toast: Let's have a celebration:toast:
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#8
Minus Infinity
I hope QLC dies a quick death. Wouldn't buy one at any price. If DRAM prices are crashing I'm yet to see any of this at the shop level. Still huge prices for DDR4 where I live unless you want CAS18.
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#9
Easo
Not a single tear of pity. Sure, business is business and you gotta make as much profit as possible, but... Well, too much is too much.
And it is not like Samsung is gonna roll over because of this.
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#10
Prima.Vera
Funny thing is here where Iive, I cannot see any price going down significantly for either SSDs or DDR4 RAM sticks. Some prices going down on Amazon but those only for low spec sticks and crappy SSDs...
What gives?!
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#11
RealNeil
Let them eat cake.


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.
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#12
R0H1T
Their biggest expense in that (mobile) division is probably marketing, they spend an unhealthy amount on promos & ads while the return is way below par especially compared to the last few years.
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#13
Prima.Vera
Aye, the current price for mobile phone is getting retarded already. No crappy phone should be worth more than 800$ IMO. And that is for the top dog.
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#14
Tsukiyomi91
a $200+ phone is more than enough these days. Save the money for an OP desktop or laptop & be done with it. At least the PC parts cycle is somewhat steady unlike a phone market where every 6 months there's a higher end flagship that overtakes the previous one. It's just a waste of resources & money.
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#15
RealNeil
I just bought a cheapo-LG Tribute Dynasty Android phone. ($50.00)
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.
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