The shift away from DRAM production to NAND flash in the first half of 2007 enabled the company increase its NAND market share to 45.9 percent, up nearly two points from 44.1 percent in the first quarter.

"Samsung's strong performance in the second quarter was due to its 11 percent growth in bit shipments," said Nam Hyung Kim, director and chief analyst for memory ICs/storage systems at iSuppli. "This major increase in shipments was due to Samsung expanding its sales to consumer applications including Apple's iPhone and iPod lines. Meanwhile, Toshiba increased its bit growth by only 2 percent due to its initial process migration to 56nm. However, iSuppli expects Toshiba's 56nm production yields to improve, causing its bit shipments to rise by more than 30 percent this quarter."

With an 18.9 percent increase in revenue, Samsung handily outgrew the overall NAND market, and outperformed its two closest competitors, Toshiba and Hynix Semiconductor

The market share gains were pronounced due to with a relatively weak performance by  Toshiba, which resulted in Samsung having a 18.4 percentage point market-share lead over its Japanese rival, up from 13.4 points in the first quarter. Hynix experienced a negative 4 percent growth in NAND bit shipments due to its difficulties of process migration to 60nm, according to iSuppli.