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Samsung Profits Down 96%, Cutting Back on Memory Chip Production

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Samsung Electronics will be cutting back on memory chip production, following a worrying drop in its operational profits. Estimates for the first quarter point to a 96% year-on-year decline - the silicon mega-corporation's lowest profit result in 14 years (since the first quarter of 2009). Samsung's operating profits fell to 600 billion won ($456 million) in January to March 2023, from 14 trillion won the previous year. The company has confirmed that a slump in sales is the main cause behind the smaller margins - with a slow global economy and a drop in demand after the chip shortages of 2020 - 2022. Manufacturers of computer and server equipment have reduced expenditure on procurements of RAM and storage solutions.

In a statement released last week, the company confirmed that it was adjusting its manufacturing output in reaction to the drop in demand: "We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured." Industry analysts in South Korean are foreseeing that Samsung's chip business will post heavy losses (into the billions of dollars) during the first three months of 2023. Samsung is expected to publish detailed financial results later this month. The analysts have spotted similar patterns at other South Korea-based memory chip markers - SK Hynix and Micron have recorded heavy financial losses across recent quarters.



Samsung, the world's largest maker of televisions, tablets and smartphones, has tried to avoid cutting memory chip production, until very recently. It faces a lot of competition from nearby rivals, as well as manufacturers scattered across the SEA region - in that light, the company has consistently tried to portray a position of great strength. A sudden decision to implement cutbacks has perhaps dented their image, especially after recent announcements of major expansions and investments in semiconductor manufacturing, with significant support coming from the South Korean government.

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92% of that is probably Nvidia switching back to TSMC lol.
 
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hmmm so does this mean I should get a 2x32GB kit of ddr4-3200 on teh cheap before it goes back up???
 
THey are horizontal, just add 64GB ram to base model laptops 16 for phones and tablets and make tv internals powerful enough to last more than just barely a year.
same for storage 1TB minimum storage for phones
 
a position of great strength
"With great strength comes great responsibility" :D

"If you fail to plan, then you are planning to fail"

Surely a company as large as Sammy has the financial reserves to weather a downturn like this, at least in the short term anyways, not to mention the bean counter/forecasting brainpowerz to plot out such a scenario into the near future & show the execs what could happen if the market for their products crashed, as it obviously has....

So if they weren't smart enough to put some $$ away for a "rainy day (or 312.41)" then they deserve whatever fate that befalls them !

And in the words of my buddy Forest:

"Stupid is as Stupid does" ...:D..:roll:..:eek:
 
hmmm so does this mean I should get a 2x32GB kit of ddr4-3200 on teh cheap before it goes back up???

If you plan on staying with DDR4 for the foreseable future no time like the present to buy some more, i believe it will only go up now as it gets end of life'd
 
THey are horizontal, just add 64GB ram to base model laptops 16 for phones and tablets and make tv internals powerful enough to last more than just barely a year.
same for storage 1TB minimum storage for phones
Why would they do that. If you can make customers buy same old size at new price level. It is just briliant!
 
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hmm gee I wonder why. :roll:
 
"With great strength comes great responsibility" :D

"If you fail to plan, then you are planning to fail"

Surely a company as large as Sammy has the financial reserves to weather a downturn like this, at least in the short term anyways, not to mention the bean counter/forecasting brainpowerz to plot out such a scenario into the near future & show the execs what could happen if the market for their products crashed, as it obviously has....

So if they weren't smart enough to put some $$ away for a "rainy day (or 312.41)" then they deserve whatever fate that befalls them !

And in the words of my buddy Forest:

"Stupid is as Stupid does" ...:D..:roll:..:eek:
Was this a drunken master statement?
 
Was this a drunken master statement?
Perhaps, but why do you REALLY need to know this ?

FYI, my main intent was to throw shade at some of the silly things that some companies (big or small) do, or don't do, that can have some very serious side effects on others outside their organizations... that's all :)
 
The analysts have spotted similar patterns at other South Korea-based memory chip markers - SK Hynix and Micron have recorded heavy financial losses across recent quarters.
Micron is an Idaho company, not Korean.
 
Why would they do that. If you can make customers buy same old size at new price level. It is just briliant!
Force the rest of the industry to compete and increase their use of memory.
they just have 20% of the mobile market but have over 33% of the nand market
 
Force the rest of the industry to compete and increase their use of memory.
they just have 20% of the mobile market but have over 33% of the nand market

We're down to 3 or 4 memory manufacturers total after a big race to the bottom and big over supply around 2008, not much room to compete if there's signs of another wave of over supply + low demand
 
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