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Samsung maintains DRAM lead in Q2 but Q3 might not be as profitable

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Last updated: August 19th, 2020 at 16:49 UTC+02:00

Samsung's share in the global DRAM market saw a slight quarter-on-quarter decline in Q2 2020, but the company's revenues did rebound, shows a recent report by market research firm TrendForce via Yonhap. Although Samsung's global DRAM market share declined by 0.6% to 43.5% in the April-June period compared to the previous quarter, its revenues have increased by an impressive 13.8%.

Samsung's revenues from the DRAM segment have fallen short of TrendForce's original expectations, as the company was estimating revenues to increase by more than 20% in Q2 2020. This obviously didn't come to pass, but even so, Samsung's DRAM revenues have increased by enough to top $7.4 billion in the three-month period ending June. In terms of market share, Samsung was followed by SK Hynix and Micron Technology. All three companies have recorded increases in their operating margins.

The third quarter might not yield such positive results

Q2 2020 was a healthy quarter for the DRAM industry because OEMs have made a greater effort in stocking up on chips, fearing that supply shortages may be caused by the global coronavirus pandemic. And precisely because most OEMs have a decent DRAM inventory, the market research firm expects suppliers to experience a decline in profitability in Q3 2020.

Product shipments will reportedly stay flat in the third quarter of the year while chip prices are expected to drop. On one hand, server OEMs have apparently stocked up for two consecutive quarters, while on the other, enterprise server customers have lowered their spendings fearing economic uncertainties. Even so, Samsung will likely maintain leadership in the global DRAM segment in Q3 2020.

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