DigiTimes writes Samsung is expected to ramp up shipments and cut pricing on standard parts and components like OLED panels, DRAM and flash memory chips to reduce its high inventory levels. Previously, Samsung was reluctant to ship these parts into the channel market but the company's declining marketshare in the smartphone market has resulted in a buildup of inventory.
Samsung has recently allocated nearly half of its OLED panel production capacity to producing related displays for China-based smartphone vendors, indicated the sources.
In recent years, Samsung has continued ramping up its production of memory chips and display products for its own production of smartphones, tablets and other mobile devices, and therefore has been reluctant to release these parts into the channel market, said the sources.
However, the declining market share has resulted in a build-up of inventories at Samsung, prompting the vendor to liquidate some key parts and components.