Samsung became a market leader in memory chips for smartphones in 2019, despite the fact that industry-wide revenues fell for both NAND and DRAM. Samsung managed to maintain its leading position in the smartphone memory segment for a whole year and got 47% of revenue.
According to Strategy Analytics, the demand for smartphone NAND Flash decreased in 2019, as well as revenues decreased by 29% compared to the same period last year. But Samsung remained the leader in the smartphone NAND Flash segment and recorded a revenue share of 42.1%. Next come Kioxia and SK Hynix in 2nd and 3rd places respectively.
In the same way, the demand for smartphone DRAM also fell by 27% compared to the same period last year. Excess of supply caused a drop in memory chip prices. According to market analysts, the successful design of Samsung became the reason for an increase in the company’s revenue. Samsung recorded a revenue share of 50.9% in the smartphone DRAM segment in 2019. It was followed by SK Hynix (29.2%) and Micron (18.5%).
2020 will be more challenging for Samsung and its competitors. The reason is very obvious, as the COVID-19 pandemic continues to negatively affect large and small businesses. It is expected that global smartphone production is going to decline. In contrast, lower demand for existing memory solutions could be offset by the growing demand for LPDDR5 and UFS 3.0 memory chips. Last month, Samsung also began mass production of 512GB eUFS 3.1 storage chips. We can say that the company's memory business is as forward-looking as possible, given all the circumstances.
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