Samsung profits down, low flash demand to blame

Samsung announced an 8.5 percent dip in profits during the fourth quarter, blaming low demand for NAND flash chips and the falling prices of flat-panel LCD displays. This may strike you as a bit odd, given all of the recent advancements in flash technology and new storage devices that use NAND flash. However, it's important to remember that although Samsung is betting the farm on NAND flash, it's still an emerging storage technology and until prices drop, demand will grow at a sluggish pace. However, with Samsung ramping up production, prices should fall during the next year, making hybrid and solid-state drives more attractive. Couple this with the fact that Samsung is very likely providing the technology driving a number of high-profile consumer products (*cough*iPhone*cough*) and it seems like the Korean giant won't be feeling the pinch for long.

For more on Samsung's falling fortunes:
- see this eWeek article