Samsung to cut shipment of PC DRAMs, focus on mobile

Samsung Electronics Co. plans to cut its output of PC dynamic random access memory chips and tap deeper into the mobile segment ahead of the release of U.S. Apple Inc.'s new iPhone models, industry sources said Wednesday.

Samsung is set to reduce the shipment of standard DRAMs used in personal computers, eventually by 30 percent, reported the Taiwan-based Economic Daily News, a move apparently aimed at bolstering its mobile DRAM capability.

"We cannot give details on the reduction of the production (of standard DRAMs)," a Samsung Electronics official said. "However, it is right to say we are seeking to expand sales of high-end products, such as mobile and server DRAMs."

Industry watchers said Samsung's plans are apparently tied to the upcoming release of new iPhone models slated for later this year, adding that Samsung's smaller South Korean rival SK hynix Inc. and Micron Technology Inc. in the U.S. will not be able to meet Apple's demand fully.

The South Korean tech giant accounted for 44.1 percent of the global DRAM market in the first quarter, marking the highest level since the 45 percent posted in the July-September period of 2011.

Samsung also posted an operating profit of 3.4 trillion won ($2.92 billion) from its chip business in the second quarter, up 82.8 percent on-year. It marked the first time for the chip business to rake in more than 3 trillion won in quarterly profits since the third quarter of 2010. (Yonhap)