Even though the DRAM market has been going through more or less rough times, Samsung still managed to not only solidify its leading position, but to even be the only company to actually grow in terms of revenues during the past quarter.
Now that the third quarter is done away with, iSupply followed its usual routine and checked on what the market ended up looking like.
Apparently, the market analyst firm found a more or less surprising situation on the DRAM market.
Those keeping track of recent developments will know that prices of DRAM chips have been dropping considerably because of PC OEM pressure.
Basically, this segment of the industry is faced with serious oversupply and demand does not look like it will catch up any time soon.
This led to weaker than average sales, and lower prices contributed to overall less revenue, but a certain leading supplier of DRAM seems to have prospered all the same.
According to iSupply's latest press release, Samsung not only kept its leading position, but actually grew while all of its rivals saw their revenues drop either slightly or considerably.
The main cause behind Samsung's better performance is the aggressive advance in manufacturing process technologies.
“Samsung has been vocal about its desire to expand its DRAM market share to as high as 50 percent,” said Mike Howard, senior analyst for iSuppli.
“The third-quarter results show Samsung has put its money where its mouth is. By investing heavily in expanding production and advancing its manufacturing technology, the company has been able to cut pricing and to eat into the market share of its competitors,” he added.
“The only limitations on Samsung’s growth will be how much share its largest PC OEM customers will allow it to take, how long the company can continue to cut prices and how much it can increase its dominance before government regulators raise anti-competitive concerns,” Howard went on to saying.
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