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Samsung to cut SDRAM prices to gain market shares


Tuesday, November 23, 2004

Samsung may continue to add SDRAM customers by slashing prices in a projected flat market in 2005, according to sources at Taiwan¡¦s IC distributors.

The sources said demand is unlikely to pick up next year. Furthermore, an excess inventory problem will carrry forward into 2005. The spot prices for SDRAM has hit their lowest level this year on November where average spot prices for 16Mbit and 64Mbit SDRAM chips were US$0.49 and US$1.04-1.10, respectively, according to DRAMeXchange.

Samsung has cushion to cut price and yet see profits since its costs are lower than other competitors, the sources noted.

By: DocMemory
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