Samsung To Reduce DRAM Output Growth in Favor of Maintaining Prices, Says Bloomberg

[NeuralNexus]

Should we be surprised? Corporations are greedy SOBs

 

[R-T-B]

Should we be surprised? Corporations are greedy SOBs

Well, can't really argue with that given their literal purpose is to make money.

 

[moproblems99]

Already happening...

You speak the truth. But we shouldn't wish for it and they certainly aren't here to save us.

 

[svan71]

Capitalism 101

I was hoping to stock cheap DDR4 near the festive season, but I guess that won't happen, probably ever!

Sorry Venezuela doesn't have any dram manufacturing facilities, no food either. Socialism 101.

 

[hat]

What does Venezuela have to do with this?

 

[pkrol]

Never wish for that.

I used to think so but there is a limit to greed. F%%% em. Go China Go. Hope they sink samsungs ram profits into oblivion.

 

[R0H1T]

Sorry Venezuela doesn't have any dram manufacturing facilities, no food either. Socialism 101.

I'm sorry if you're from Venezuela, if it makes you feel any better I'd say cartels, anywhere & everywhere, make money regardless of socialism or capitalism.

I used to think so but there is a limit to greed. F%%% em. Go China Go. Hope they sink samsungs ram profits into oblivion.

And then when they have a monopoly over DRAM (or NAND) production what do you think will happen, I bet you didn't think of that one!

 

[R-T-B]

And then when they have a monopoly over DRAM (or NAND) production what do you think will happen, I bet you didn't think of that one!

Honestly? A monopoly is a monoploly. I don't care if it Chinese or Korean, it sucks at the same level.

 

[Bones]

I'm waiting to see what will be the "Cause" of the next maufacturing plant fire/disaster will be.
That's the only thing I'm wondering about, not the effect on prices themselves - That's just a given.

 

[TheinsanegamerN]

Because market share isn't worthwhile if you your overall profits drop. This is why they were accused of price fixing to begin with. In this situation Samsung is content letting Micron and Hynix pick up the slack because if they do prices won't change as much because of just how huge samsung is as a supplier to so many.

Another example if AMD processors or graphics cards were faster than Intel / NVIDIA due to the situation and how much they can produce at TSMC etc they could never supply enough. In this case Micro / Hynix can reap the benefit of higher prices along with Samsung by doing absolutely nothing. Overall supply diminishes and everyone laughs on there way to the bank.

But if samsung drops production 10%, and micron increases by the same amount (in volume, not percentage), prices and profit margins would remain the same, but micron would bring in more profit, while also denying your competitor (samsung) the extra profits.

This move by samsung is a gamble. If other DRAM makers all think like samsung does, then all is good. But if any of them get the bright idea to screw over samsung hard with a flood of dram supply at inflated prices, samsung will have a bad time indeed.

Your AMD/nvidia comparison is flawed because in that case, you have the makers tied to TSMC, which places a natural limit on supply. DRAM makers have applied entirely artifical limits on production right now, there is nothing to prevent these companies from slightly ramping up and stealing that extra profit right out from under samsung. By doing so, they woul still get those extra profits, but also deny samsung profit in the process.

In capitalism you dont let your competitor get an easy break. AMD did that with polaris and pascal, and it ended up with nvidia making a mint in extra profit, which is gonna bite AMD hard over the next few years.

 

[crazyeyesreaper]

But if samsung drops production 10%, and micron increases by the same amount (in volume, not percentage), prices and profit margins would remain the same, but micron would bring in more profit, while also denying your competitor (samsung) the extra profits.

This move by samsung is a gamble. If other DRAM makers all think like samsung does, then all is good. But if any of them get the bright idea to screw over samsung hard with a flood of dram supply at inflated prices, samsung will have a bad time indeed.

Your AMD/nvidia comparison is flawed because in that case, you have the makers tied to TSMC, which places a natural limit on supply. DRAM makers have applied entirely artifical limits on production right now, there is nothing to prevent these companies from slightly ramping up and stealing that extra profit right out from under samsung. By doing so, they woul still get those extra profits, but also deny samsung profit in the process.

In capitalism you dont let your competitor get an easy break. AMD did that with polaris and pascal, and it ended up with nvidia making a mint in extra profit, which is gonna bite AMD hard over the next few years.

That would only work if SK Hynix and Micron offered memory that is of the same quality as Samsung. Fact is Samsung produces better memory than both, especially when it comes to overclocking. So while the other players can step up as soon as Samsung gets "back to work" they will take back that market share relatively quickly. There is also the fact that since Samsung produces more than just memory their agreements come into play they can offer higher quality and better packages with other items they produce in their fabs. So again even if they take a hit short term the fact is like TSMC, Samsung is the major player here. Like Intel has for the last few years until Ryzen, Samsung can essentially afford to rest on its laurels if it wishes. No one is going to challenge them and even if they do Samsung is prolific they can literally spend money to bury their competitors. Instead everyone will play along nicely because it means more money and less risk.

 

[R0H1T]

Honestly? A monopoly is a monoploly. I don't care if it Chinese or Korean, it sucks at the same level.

Well I'm not advocating for anyone's monopoly, better control/regulations would be far more preferable. However in case of China, the problem is that their ventures are funded by the govt, directly or otherwise, so if they get a hold of the tech industry you can likely kiss goodbye to competition for years to come. I'm not talking about mega-corps like SS, Intel, Apple but the smaller ones that really make a difference. They've done the same in consumer electronics & smartphone segments, getting there in display panel, there's no stopping them if they actually take over "Hi-Tec"

 

[hat]

China offers a cheap, usually competitive product. I bought a very cheap ZTE Force phone and it worked just fine until the day it was eventually destroyed by funky "dust" from the shitty "material" I used to work with. My also cheap (though not Chinese) LG Volt phone worked great (though the only root option for me was that shitty Kingroot) until I got my Galaxy S4. Supposedly the best out of the bunch, but I've had more problems with it than any other Android phone I've ever had.