Samsung Could Increase Component Prices to Compensate for Galaxy Note 7 Losses
When Samsung announced its profits for Q3, 2016, it showed that despite the Note 7 fiasco, the company was able to report a growth, even though the company would have ended up generating much more revenue had the recall not taken place at all. Still, Samsung has realized that there are other avenues to take advantage of to compensate for its flagship phablet’s losses, and one of them happens to be mass production of various components ranging from DRAM modules, NAND flash memory, and AMOLED displays.
Samsung Most Likely to Increase Pricing for DRAM Modules, NAND Flash Memory and AMOLED Displays to Compensate for Its Galaxy Note 7 Losses
According to various reports from TrendForce, the production halt of Galaxy Note 7 will allow other brands to take advantage of the smartphone market, which will obviously include Apple. KGI Securities analyst Ming-Chi Kuo has stated as much 5-7 million customers might resort to looking for a smartphone other than the one manufactured by Samsung.
“The halt of Note 7 sales will furthermore alter the market share of smartphone brands in the large-size model segment. A substantial portion of consumer demand will now go to the three major Chinese brands? Huawei, Vivo and OPPO. The withdrawal of the Note 7 from the market will also benefit the sales of the iPhone 7 Plus that was just released in September.”
Samsung has proven that demand for its components is capable of becoming one of the most profitable avenues ever, which is why according to sources close to the matter, the company could increase pricing of its DRAM modules, NAND flash memory, and AMOLED displays in order to cover up the losses incurred by Galaxy Note 7. Additionally, with the announcement of its 8GB LPDDR4 DRAM modules for mobile devices and 10nm FinFET chips, the company could definitely get an influx of orders in the near future.
“To stay in profit, the technology conglomerate may increase the prices of its memory and panel components which have a dominant market share worldwide.”
In another report, Samsung has also said to offer Note 7 owners discounts so that they may feel less bitter when upgrading to a Galaxy S8. The upcoming flagship is said to be better in every way possible and to avoid another ‘battery explosion’ incident, the tech giant is looking to be in talks with LG for smartphone batteries.
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