Samsung loses due to a ‘chip’!
2. Jan 2008 22:16, sonu42
IIPM MANAGEMENT INSTITUTE
A power cut has hit consumer durables company Samsung in a major way. One of its plants near Seoul had the power cut following which the company had to close down six chip production lines. Losses are expected not to cross $54.19 million. But this accident in all probability would lead to a constricted supply & a price hike. It could also entail a complete loss of total NAND flash memory chips produced in a month. Portable electronics require these chips for data storage and in the first quarter Samsung commanded a good 44% share in this market. As the electronic industry is preparing to enter the holiday gift giving season, any restricted supply is sure to hit both the company & the market hard.
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