Samsung Electronics Co Ltd Aims to Grab More of SSD Market In 2015 As It Is In Talks With Potential Customers Like Google, Amazon And Apple

Samsung Electronics Co Ltd (KRX:005935), US ADR, SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) wants to grab a large share of the solid-state drive (SSD) market in 2015. The company is in talks with potentially large customers including Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOGL) and, Inc. (NASDAQ:AMZN). Samsung boasts a memory chip technology that allows packing of more memory cells together to reduce space usage.

Samsung uses a new SSD technology known as 3D V-NAND, which allows for stacking of more memory cells to give greater capacity while maintaining small size. The company is in discussions with Google, Apple and Amazon to use its SSD products in their datacenters. Samsung also hopes to make more SSD sales as demand remains high for mobile and servers.

There reports that Samsung is supplying its SSD to Apple Inc. (NASDAQ:AAPL) for MacBooks.

Larger market share

According to IHS, Samsung will possibly control 35% of the SSD market share in 2015 and 2016, and its revenue will rise from just about $4 billion in 2014 to more than $4.57 billion this year. Revenue in the SSD segment is expected to rise further next year to about $4.9 billion. Overall, SSD market is expected to reach $13.12 billion in 2015, larger than $11.58 billion in 2014. Further growth of the market is expected, leading to market value of $14.26 billion in 2016.

Samsung controlled 34% of the solid-state drive (SSD) market in 2014, fetching nearly $4 billion in revenue in the segment. It closest rival Intel Corporation (NASDAQ:INTC) generated $1.99 billion in the SSD market.

Samsung boasts as the only company currently able to offer stacked 3D V-NAND SSD in large volumes, which allows the company to win more contracts.

Betting on semiconductor business

The company is looking for new growth and its semiconductor business is showing positive signs of growth. Business in the company’s mobile unit is longer what it used to be as competition intensifies from rivals Apple Inc. (NASDAQ:AAPL) and Xiaomi.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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