As being shown in the chart above, one could find that Samsung customers were paying 34% premium over the price offered by other major DRAMs suppliers. This had made Samsung the most profitable DRAMs maker with 44% in average operating margin - far higher than its other major competitors for the period 1Q 2000 – 1Q 2004.
Why Samsung customers were willing to pay that price premium? There are two possible reasons that could simply explain this - the reliability of Samsung products and the company’s ability to customize products to customer demands.

From the customer perspectives, they are willing to pay more for a reliable product with less deficiency which help solving their problems and provides convenience and creates added values to them. Besides, they prefer dealing with those suppliers who are able to customize products according to their specification and required features, and committed to their satisfaction.

How Samsung achieved those two objectives? Thanks to the company’s years of conforming to strict quality control practices and its strong obsession towards reliability and performance and its adventurous technology innovation.

Samsung took pride for having developed one of the most advanced precision technologies which produced more chips with lower deficiencies. This can be evidenced by its ability in 2003 to achieve 80% in production yield performance – the highest among other DRAMs suppliers. (Exhibit 10c) The company ensures that only the most viable and proven technologies – not necessary the complicated one, were employed to produce its products. This may assure reliability and consistent performance of products. Moreover, the engineers may promptly solve the product problems and retain customers’ confidence. This fact was further supported by a true event happening back in early 1980s when Samsung made a critical decision to use