- Samsung is enforcing long-term NCNR contracts, locking buyers into fixed volumes and pricing.
- This removes negotiating power, forcing customers to absorb price increases without benefiting from drops.
- The shift could raise PC prices and push rivals like SK Hynix and Micron to follow suit.
With this, the impact on the PC and laptop market is direct, since manufacturers like HP, Dell, and Lenovo lose their ability to modify configurations, costs, and final prices. This can result in more expensive devices or those that are less responsive to fluctuations in demand, particularly in the mid-range and low-end segments, where profit margins are more susceptible to memory costs.
They will concentrate on successful models and manufacture them in accordance with sales, raising prices as needed. The AI market, where money appears to originate from a parallel universe more analogous to a central bank than from mutual investment, is less affected by this, but it will still be unpopular.
Furthermore, Samsung has secured contracts, locked in prices, and control over DRAM and NAND Flash memory with SK Hynix and Micron, putting pressure on them to do the same if they want to preserve the profitability that Samsung is going to attain.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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