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Price a year and a half of the memory price monopoly? Development and Reform Commission has interviewed Samsung

via:CnBeta     time:2017/12/22 7:01:46     readed:618

Samsung is the world's largest memory chip maker, accounting for about 48% of the DRAM product market and about 35.4% of the NAND Flash product market. DRAM, NAND Flash memory chips are the two main products, the former mainly for memory, which is used to store data flash. Two types of products in mobile phones, computers,serverThe market is widely used. According to the data provided by analyst firm China Flash Memory Market (CFM), in 2017, the global market for memory chips is 95 billion U.S. dollars, of which DRAM is about 50.35 billion U.S. dollars and NAND is about 40 billion U.S. dollars.

In 2016 Q3, due to the lack of demand in the market, memory chips started to enter the price channel and caused the prices of mobile phones, solid state drives and memory chips to rise gradually. Among them, the mobile phone is selling hot generally 100-200 yuan, the new flagship sale price than the previous stalls about 300 yuan higher than the product, while the crazy memory is 300% increase over the year.

In early 2017, most industry analysts forecast that the price hikes of memory chips will come to an end in the second half of this year according to the manufacturer's production cycle. However, at the moment, the time point for depreciation is basically delayed until the second half of 2018.

Profit soared

"Store, exceed screen, CPU, become the biggest cost of the mobile phone", a handset manufacturer told reporters that "the cost stored in the mobile phone has reached 25% -35%, and the shipment volume is not very large, the mobile phone manufacturers have no words at all Right, the price can not talk less than this year, different capacity flash memory prices rose more than 30% -40%. "The person, for example," 32G, 64G flash memory prices are based on 5 US dollars, 10 US dollars raised, 128G price adjustment are Is 20 dollars, to the mobile phone manufacturer, this kind of price adjustment is very scary. "

Global memory chip suppliers only Samsung, Micron, Toshiba, Hynix, Western Digital and other companies, of which Samsung, Micron, Hynix in the DRAM market occupy more than 90% market share.

Huge gains have brought huge profits to these chip giants. Samsung's latest earnings report shows that in 2017 Q3, Samsung's revenue was 54.5 billion U.S. dollars, up 29.7% from the same period of previous year, and its net profit was 12.76 billion U.S. dollars, up 179.47% over the same period of last year. In the first three quarters of 2017, Samsung's total revenue was 152.656 billion U.S. dollars, up 16.8% from 130.446 billion U.S. dollars in the first three quarters of 2016. However, the first three months of 2017 saw a profit of 33.81 billion U.S. dollars, up 92.3% over the same period of previous year. After the terminal business because of "battery explosion" defeat, the semiconductor becomes Samsung's main profit source.

It is worth mentioning that, in 2017 Q2, thanks to the continued rise in the price of memory chips, Samsung semiconductor revenue of 15.73 billion US dollars, more than Intel's 14.763 billion US dollars, becoming the world's largest chip company for the first time. Since June 1, 2016, the stock price of Samsung has risen 90% to 2.555 million won from 1.33 million won. In November 2017, Samsung created the highest share price in nearly a decade, reaching 2.86 million won.

According to Taiwan's related industry chain news, Samsung, Hynix successively announced the first quarter of next year to raise the DRAM price of 3% -5%, the price of storage products will continue to rise.

As the world's largest producer of electronic products, consumer markets, China has become the largest wave of pressure on the market price. However, PC, mobile phone manufacturers in the presence of several oligarchs almost no price right of speech. Even Foxconn, which is best at supply chain management, can not afford the price, a Foxconn told reporters: "It is clear that the market is saturated, with money not available at the beginning of the year, and now it's money, The price is high. "

Price monopoly of the former section

Many industry insiders speculated that there were price alliances among several big oligarchs. After all, this price alliance appeared during 2000 and was later fined 730 million U.S. dollars by the U.S. Department of Justice. It was the second largest anti-trust fine in the history of the United States.

In 2000, the global Internet crisis, the PC market, a substantial decline in size, when Samsung, Hynix, Infineon, Micron and other companies have just experienced expansion, DRAM prices plunged. DRAM market size dropped from 28.8 billion U.S. dollars in 2000 to 11 billion U.S. dollars in 2001.

However, DRAM prices rebounded quickly after the market did not improve, with the price rising more than 300% in half a year. Including Dell, HP, Apple, IBM and other companies directly bear the cost pressure brought by price increases. This situation caused the attention of the U.S. Department of Justice. In 2002, the U.S. Department of Justice issued summons to companies such as Micron, Samsung, Hynix and Infineon to sue for price monopolies and subsequently started the investigation.

During the investigation, Micron Technology took the lead to plead guilty to surrender without penalty. Subsequently, Samsung, Hynix, Infineon, and Elpida acknowledged the price monopoly in 2005-2006. Samsung was punished by 300 million U.S. dollars and Hynix and Infineon Ling, Elpida were fined 185 million US dollars, 160 million US dollars, 84 million US dollars, a total of 729 million US dollars.

Samsung 300 million US dollars mainly for fines for monopoly revenue, the United States Department of Justice found that Samsung in 1999-2002 there is price monopoly during the DRAM sales in the United States reached 1.2 billion US dollars, these sales were fined in accordance with 20%, reaching 240 million Dollars. It needs to be pointed out that this ratio is higher than the national standard of fines. Earlier, when the NDRC punished Qualcomm, the fine was set at 8% of Qualcomm's revenue in China in 2013.

Although it is unclear whether regulators will conduct antitrust investigations of the storage products that are currently sustaining price increases, the likely emergence of a price alliance warrants vigilance.

Oligopolistic cartelism is not only used to control prices for profit, it is often used to crowd out competitors. Today, the one-and-a-half-year upsurge in prices is providing more and more cash flow to storage giants such as Samsung, which will inevitably face challenges from Samsung, Micron, Elpida, etc., as they enter the memory industry in the future Price competition of enterprises.

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