Yesterday we informed you that even though Samsung's profits are really excellent, the company is not exactly in an enviable position. As there are disputes between some members of the clan that runs the company, it may well happen that the company goes under. Because of the internal split, it probably won't be able to function completely 100%, and for that it is not forgiven in the rapidly growing market for the article that the company produces.
Chinese companies, about which we had no idea just a few years ago, are growing rapidly and are not afraid to "dabble" in the craft even of old giants such as Samsung. It was he who held the lead in the global market for semiconductor components for a long time. But that is about to change, according to Gartner analysts.
“The market bubble that Samsung is inflating will burst in 2019. New suppliers will offer more attractive prices to customers and they will largely move away from Samsung. He will thus lose most of the profits that he has earned in this industry or will still manage to earn in the next year." thinks the company's chief analyst.
Did you sew on the Samsung whip yourself?
The company believes that the entire bubble was created in large part due to the recent shortage of quality memory chips. With regard to the situation, Samsung has raised the price quite radically for those. However, it now seems that this was not a very smart move and smaller companies have run out of patience. They have slowly started to launch their lines that will produce comparable chips for a fraction of the price. The Chinese market in particular is a real champion in this respect and therefore it is the main threat. It is very unlikely that Samsung would be able to respond to the minimum prices of Chinese companies by lowering its own price. The cost of producing chips in specialized factories in South Korea is much higher than it is in multi-purpose and super-modern factories in China. In any case, it will certainly be interesting to see how Samsung deals with the whole plot. I think that not only we, but also he himself cannot imagine his decline.
