SanDisk said it expects fourth-quarter revenue to be lower than it had forecast, citing weaker-than-expected sales of retail products and NAND storage chips.
The weak revenue is likely due to Samsung Electronics shifting focus to its chip business, among others, to help make up for declining smartphone sales, Pacific Crest Securities Monika Garg said.
NAND memory chips are widely used in smartphones, cameras and other mobile devices to store music, pictures and other data.
Samsung is grappling with lower internal sales of its NAND chips due to weak smartphone sales, meaning the company would be selling its chips in other markets, which impacts pricing, Garg said.
Several analysts estimated Samsung's chip business earned more than its mobile business in October-December, buoyed by healthy demand for memory chips from personal computers and smartphones.
SanDisk, which is increasingly using its chips to build and sell solid-state drives directly to companies and consumers, had already warned of supply constraints for the quarter.