Samsung Electronics to slash prices of its memory chip products next year

DigiTimes reported that Samsung Electronics may significantly reduce the price of its memory chip products next year to further consolidate its market leadership.

     Currently, Samsung Electronics' share in the global memory chip market is gradually declining. For example, its DRAM market share fell from 43.5 percent to 40.7 percent in the third quarter. While it still holds the market share, SK Hynix and Micron Technology are getting close. 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 quarter.

     Many have different opinions. "The global semiconductor industry is already in recession, and if Samsung Electronics lowers prices, losses will increase," one of the people said, adding, "In the memory chip market, customers, not suppliers, decide product prices. It is unrealistic for any supplier to reduce the price of its product in the first place.”

     Others took the same view as the paper. "Price cuts are effective because the recession will eventually end and inventory and demand conditions will improve," one of them continued. "Samsung may become aggressive because maintaining market share is important and it is able to withstand the economic downturn." Recession until conditions improve.