Samsung may jack up memory and display component prices to compensate for the Note 7 writeoff

Samsung may jack up memory and display component prices to compensate for the Note 7 writeoff
Samsung is providing mobile DRAM and flash memory modules, processor manufacturing services and, lately, AMOLED display panels for a lot of high-volume phone makers out there, and might take advantage of its commanding supplier position to catch up its breath a bit after the $5 billion Note 7 writeoff, warn analysts.

The DRAM and flash memory prices have been on an upswing due to newer technologies like DDR4 and UFS 2.0 coming online, but the price increase curve might become even steeper now that the Note 7 is out of the picture. 

The logic is that a bunch of Chinese phone companies that utilize Samsung components in their phones - Xiaomi, Oppo, Vivo or Huawei come to mind - might pick up the Note 7 slack, and increase production and marketing of their own big-screen phones. This rise in component demand would force Samsung to jack up prices, and, given that the chip-making business is now responsible for more than half of its profits, could offset the Note 7 losses somewhat.

source: Korea Times

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6 Comments

1. AlikMalix unregistered

They're a business - and if that's what they need to do - I'm not gonna judge. But keep on mind - there are competitors out there just as capable to do it for cheaper. Then there's that QC thing that Samsung kinda screwed up on - i doubt anyone wants to pay more. But then again their foundries are needed to fill the orders.

2. jimjam unregistered

Makes sense

3. darkkjedii

Posts: 31601; Member since: Feb 05, 2011

Bad move Samsung. You messed up, own it and do better.

4. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 2015

Well, seeing as how they've ramped up production of S7 units, no wonder OnePlus is having issues getting their "optic" AMOLED screens for the OP 3. Higher DRAM costs, higher flash memory costs, and yeah.

5. PrYmCHGOan

Posts: 335; Member since: Sep 28, 2016

Firat off, companies that buy product from Samsung, do so under contarct for a certain amount at an already agreed upon price. You are assuming Samsung will hike prices. They won't because those OEM's could easily go buy from a competitor. Its funny how PA always comments on business and just be wrong. Yes loses do result in higher prices, but not always. This isn't insurance that keeps going up, even if you don't get tickets or accidents.

6. greyarea

Posts: 267; Member since: Aug 14, 2015

"Its funny how PA always comments on business and just be wrong." What, you expect them to be up to speed as you but the difference is they don't work for samsung.

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