DRAM sales have long been a cash cow for Samsung. The company is the leading supplier of DRAM products in the world. This dominant position enables it to earn a significant chunk of its revenues from the sale of this vital component.
However, headwinds in the market have hit Samsung's DRAM sales. The company saw its DRAM sales fall in Q1 2022. This is the second consecutive quarterly decline for Samsung's DRAM sales.
DRAM chips are Samsung's flagship memory products
Lower prices and other circumstances have impacted sales of this component. The cyclical downturn in DRAM prices is a major reason for the lower revenues. The conflict in Ukraine and production disruptions due to COVID lockdowns in China have dented demand as well. The data from market research firm Omidia shows that Samsung's DRAM revenue was $10.34 billion in Q1 2022, registering a $9 million decline from Q4 2021.
This is now the second straight quarterly sales decline for sales of DRAM, which happen to be the flagship memory product of Samsung Electronics. They declined 9 percent quarter-over-quarter to $10.5 billion in Q4 2021.
Despite declining revenues, Samsung not only maintained but slightly extended its lead at the top. At the end of March 2022, the company accounted for 42.7 percent of the global DRAM market, up 0.8 percentage points from Q4 2021.
Things may get worse before they get better. Industry analysts are of the view that the global DRAM market will continue to face headwinds in the second half of this year. Some expect DRAM prices to drop by as much as 10 percent due to soaring inflation and fears of recession in major economies.
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