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Samsung reports Q1 DRAM sales drop for second quarter straight

Samsung reports Q1 DRAM sales drop for second quarter straight

Samsung Electronics, South Korea’s largest chipmaker, reportedly faced a drop in its DRAM sales in the initial three months of the year for a second-quarter straight due to weaker prices and other negative factors.

However, data showed that the South Korean tech heavyweight still managed to maintain its global market dominance.

As per data from global market analyst Omdia, revenue from Samsung's DRAM sales was nearly $10.34 billion in the January-March quarter, $9 million lower from the previous three months.

This is the second consecutive quarter of drops for the chip unit. In the Q4 2021, sales of the Samsung DRAM, which is the company’s flagship memory product, fell as much as 9% on-quarter to $10.5 billion.

Despite the fact, Samsung continues to hold the leading position in the global DRAM industry, increasing its market share 0.8% from 3 months earlier to 42.7% as of March end.

Dynamic random-access memory or DRAM is a kind of volatile semiconductor memory that stores data while a power source is available. It is frequently utilized in servers, workstations, and personal computers.

The decline in Samsung's DRAM sales coincided with a cyclical decline in DRAM prices, the ongoing crisis in Ukraine, as well as the disruption of tech products’ production brought on by China's Covid lockdowns.

Since falling by 9.5% in October 2021 and 8.1% in January this year, DRAM prices have been steadily declining.

SK Hynix, the second-largest producer of DRAM in the world, announced first-quarter DRAM sales of $6.56 billion, a decrease of $871 million from the three months of October to December. Through the cited timeline, SK Hynix's market share decreased to 27.1% from 30.1%.

However, the third-largest company in the industry, the American chipmaker, Micron Technology Inc., witnessed its first-quarter DRAM revenue jump by $575 million to $6.03 billion, and its market share rise to 24.8% from 22.1%.

After topping at $26.24 billion in the third quarter of 2021, global DRAM sales fell to $24.25 billion in the Q1 of this year, indicating the second straight quarter of declines.

Meanwhile, analysts presented a bleak picture of the global DRAM industry for the second half of this year, estimating that DRAM prices could fall by as much as 10% due to rising inflation and concerns regarding global recessions.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.