Samsung Expected to Slow Memory Chip Output to Maintain Market Pricing

cageymaru

cageymaru

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According to sources, Samsung has decided to slow memory chip output to create more market demand. This in turn will keep prices high or possibly even drive them up higher as the corporation seeks to maintain its bit growth projections of 20% for DRAM and 40% for Nand in 2018. If Samsung continues to produce chips at its current pace, the estimated growth projections would have dropped to less than 20% for DRAM and only 30% for Nand flash memory. With only 3 major memory manufacturers left in the sector, this will inevitably raise the price of similar products at SK Hynix Inc. and Micron Technology Inc.

"If Samsung does cut its DRAM bit growth, it shows the company is happy with the current oligopoly market structure," said Anthea Lai, an analyst at Bloomberg Intelligence in Hong Kong. "It prefers keeping supply tight and prices high, rather than taking market share and risking lower prices, therefore chances for DRAM prices to stay strong is higher." Bit growth, which refers to the amount of memory produced, is a key barometer for gauging market demand.
 
We all know the big manufacturers have been doing this kind of sleazy stuff forever.

I'm surprised to hear them speaking so openly about it though.

As far as I'm concerned, DDR4 already costs about twice what it should. It's frustrating that they want to drive it even higher.

This is what happens when the market over-consolidates. No one in any industry should ever be big enough that they can pull this off.
 
So why haven't governments gone after them for these willful violations? Fucking ridiculous!
 
tikiman2012 said:
So why haven't governments gone after them for these willful violations? Fucking ridiculous!
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Cutting production, while disagreeable, is not illegal, getting other companies to agree to do it with you is.
The problem for us as consumers is they've figured out how much we were willing to pay last year and early this year and are protecting their (inflated) margins when they could be normalizing the market. I have several friends who were waiting to build systems for after the RTX launch and this is the kind of news they don't want to hear.
 
Crackinjahcs said:
Cutting production, while disagreeable, is not illegal, getting other companies to agree to do it with you is.
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Exactly, it's business practice vs. collusion/price fixing. There is no governing body on this planet that would even consider challenging a "business decision" without collusion.

Although shitty for the consumer, I'd be willing to bet most anyone with any finance acumen would recommend this to keep margins at a stable level.
 
Oh the almost 100% increase in price wasn't enough? How tf do investors demand that a company should make more profit year after year, how is that feasible? After so many years of the shit at such inclining rates you would think they would be satisfied...these cunts can Fuck right off..
 
jfreund said:
I'm sure Micron and Hynix will pick up the slack. It's not like they'd all plan to cut production at the same time in order to manipulate the market. That would be illegal.
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Oh for sure, Hynix and Micron would never team up with Samsung *wink* *wink* to artificially clog demand *wink*.

Those three are practically the OPEC of memory.

(For those that don't get the winking, they're under investigation and being sued for collusion / anti-trust for price fixing)
 
Eh, I got 8 years out of my last system, I'm only on 2 for this one. This is the part where I focus on other hobbies (again.)
 
Nolan7689 said:
Ahhh just like big oil.
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That hasn't been true of Big Oil in a looooooong time. OPEC did just fine, except they kept prices high enough that it became profitable for the US and Canada to drill a ton of their own wells. Now that the US and Canada are among the biggest producers, OPEC is at the mercy of the global market.
 
Mohonri said:
That hasn't been true of Big Oil in a looooooong time. OPEC did just fine, except they kept prices high enough that it became profitable for the US and Canada to drill a ton of their own wells. Now that the US and Canada are among the biggest producers, OPEC is at the mercy of the global market.
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The current 15 OPEC member countries have almost 75% of the world's oil reserves, yet they bottleneck their production (actively ORDER fellow member countries to REDUCE production) to less than 45% of worldwide oil production. That is clearly a case of manipulating the global market since they have a proven abundance of supply, but intentionally cut back production in order to create demand and raise prices. No different than the RAM/NAND colluding fucks that have been using that same playbook for years now.
 
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What competition? Last price fixing had five makers, and two have been bought by the remaining three. Only threat coming at them is China beginning to make their own.

Does anyone else still believe in a 'free market' with all the collected data so makers of anything know how to manipulate supply and keep demand inflated?
 
and soon they will be hit with the trump tariffs tax ..so more people in GOVT profit..and we ....end users pay more
 
Can't wait for the EU to get wind of this. We need their pro-working class policies/politicians to keep these corporations in check for us!
 
Chunder said:
Can't wait for the EU to get wind of this. We need their pro-working class policies/politicians to keep these corporations in check for us!
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So if you had a lemonade stand and summer ended would you want the government to force you to keep making the same amount of lemonade despite it snowing outside and people didnt want to drink it?
 
workshop35 said:
So if you had a lemonade stand and summer ended would you want the government to force you to keep making the same amount of lemonade despite it snowing outside and people didnt want to drink it?
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The thing is people want to drink it, but a lot of people can't because of shit like this from Samsung.
 
readeh said:
The thing is people want to drink it, but a lot of people can't because of shit like this from Samsung.
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I'll continue with the leomanade analogy

Building more fab capacity when you're seeing a possible downtrend in demand for memory is like buying more lemon juicers and sugar in october
 
workshop35 said:
I'll continue with the leomanade analogy

Building more fab capacity when you're seeing a possible downtrend in demand for memory is like buying more lemon juicers and sugar in october
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Thing is there is plenty of demand for DDR4, which is why we have the high prices now.. People want to buy, but simply don't want to spend or can't afford ram at these prices.
3 weeks ago I bought used ram on eBay as I don't want to buy new ram with the crazy prices that are going on now, and I know a lot of other people are doing the same thing. I had family and friends wanting to build gaming computers, but the gpu prices went crazy and so did the ram, which suddenly made a half decent gaming computer 40% more expensive than it should have been.
These trillion dollar companies need to stop their greedyness and shady business.
 
readeh said:
Thing is there is plenty of demand for DDR4, which is why we have the high prices now.. People want to buy, but simply don't want to spend or can't afford ram at these prices.
3 weeks ago I bought used ram on eBay as I don't want to buy new ram with the crazy prices that are going on now, and I know a lot of other people are doing the same thing. I had family and friends wanting to build gaming computers, but the gpu prices went crazy and so did the ram, which suddenly made a half decent gaming computer 40% more expensive than it should have been.
These trillion dollar companies need to stop their greedyness and shady business.
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I dont like the high prices either but when you have phones coming out with 512gb of storage, IoT everything, big data and AI demand it makes sense that prices will go up. Greed is always a factor of doing business, but I havent seen any proven cases of shady practices. Doesnt mean there isnt any though
 
Crackinjahcs said:
Cutting production, while disagreeable, is not illegal, getting other companies to agree to do it with you is.
The problem for us as consumers is they've figured out how much we were willing to pay last year and early this year and are protecting their (inflated) margins when they could be normalizing the market. I have several friends who were waiting to build systems for after the RTX launch and this is the kind of news they don't want to hear.
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No they haven't because I'm not willing to pay this amount. I'd rather go on having 16GB of ram until the end times.
 
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