South Korean Samsung continues to achieve success with its NAND and DRAM sales. A new record has come from Samsung.
Samsung managed to maintain its leadership in the NAND and DRAM market segments in the last year. The South Korean company increased its market share by a few points in the 4th quarter of 2020. Globally, the NAND market experienced quarterly revenue decline in Q4, while global DRAM revenues increased by 1.1 percent. Given Samsung’s performance, the company captured 32.9 percent and 42.1 percent of the NAND and DRAM markets, respectively.
Research company TrendForce; He says that although the global NAND market fell by about 3 percent in the fourth quarter of 2020, Samsung was able to increase its market share due to several factors. It is said that Samsung has exceeded the needs of its Chinese customers (excluding Huawei).
These factors led to higher NAND sales for Samsung in the fourth quarter. The company’s NAND flash shipments increased 7-9 percent in the Quarter. The market trend caused excess supplies and Samsung had to adjust, that is, to lower their prices. As a result, the company experienced a 3.4 percent revenue drop on a quarterly basis.
This year, market watchers expect Samsung to continue to lead the NAND market as the V6 process increases manufacturing capacity for SSDs and UFS solutions. Contrary to the performance of the NAND segment during the 4th quarter of 2020, global DRAM revenues have recently increased by 1.1 percent. Samsung saw revenue growth of 3.1 percent, and operating profit margins fell from 41 percent in the previous quarter to 36 percent.
DRAM prices dropped in the fourth quarter, but Samsung managed to retain at least 30 percent profit margin. The company is said to compensate for the downward pressure on revenue by increasing its DRAM shipments.
TrendForce expects DRAM prices to plummet in the first quarter of 2021 and accelerate the cyclical rise in DRAM prices.