| Samsung, one of the top memory chip makers, said the company is expecting chip shortage throughout 2004 due to low inventories and supply constrains.
Regardless the chip shortage, Samsung expects to sell more handsets in the second quarter of this year. Samsung shipped around 20.1 million handsets in the first quarter and plans to break the record this quarter. The handset demand has increased significantly in the company's US and Asian markets.
The shortage in chips have caused DRAM modules to cost much more than the company and the industry analysts expected. The prices started at top values and are not expected to improve if the chip shortage continues.
Samsung reported in a conference that the supply limit is causing stable prices in the market during the slow season.
Sources reported, low chip inventory along with increased sales in Samsung's handsets and flat screens helped the company to nearly triple its profits last quarter.
DRAMExchange.com reported the prices of 256MB chips increased by 43% ($5.29) in the first quarter of this year.
Even the contract prices have increased for not only the first quarter but also for the month of May, said Samsung in a document.
Samsung is known to charge 10%-20% higher than other DRAM makers due to the company's high-quality products and its broad consumer base.
The DRAM maker also reported that Mobile phone sales are expected to increase throughout this year. Currently the record is set at 65 million units.
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