SK hynix profit falls 67.1% on weak chip demand

[THE INVESTOR] SK hynix, the world’s second-largest memory chipmaker after Samsung Electronics, posted a plunge in its second-quarter profit as chip prices continued to decline due to weaker demand for smartphones and PCs.

Operating profit fell 67.1 percent to 452.9 billion won (US$390 million), the lowest in more than three years, during the April-June period. Revenue also dropped 15 percent to 3.9 trillion won. 

Despite increased shipments of DRAM chips, the company said, its profit was hit hard by falling prices. The average price declined 11 percent compared to the previous quarter. 

Related story: SK hynix to beef up 3-D NAND production

Shipments for NAND chips, used for long-term data storage on smartphones and computers, rose 52 percent and the average selling price fell 11 percent.

The company said it was pinning high hopes on the upcoming new phone launches by its key clients Samsung Electronics and Apple in the latter half of this year to elevate its overall profit.

By Lee Ji-yoon (jylee@heraldcorp.com)