Skip to comments.Hynix outdoes Samsung in profitability (South Korea)
Posted on 07/01/2013 11:01:19 PM PDT by TexGrill
SK hynix, the worlds No. 2 supplier of computer memory chips, is expected to beat the long-time market leader Samsung Electronics in terms of profit margin during the April-June period.
This is the first time in almost eight years for SK hynix to be more profitable than Samsung. In the third quarter of 2005, SK hynix (then Hynix Semiconductor) toppled Samsung by generating 31 percent in profit margin higher than Samsungs 29 percent, they said.
As the memory chip shortage continues, conventional DRAM prices have extended gains. Consolidation and slowing technology migration is leading to significantly slowed supply growth. This undersupply and improved pricing are now finally impacting mobile DRAM prices, said Mark C. Newman, senior analyst at Bernstein Research in Hong Kong, Monday.
DRAM is a simple dynamic random access memory. The chip is used to read data. The portion of DRAM chips for PCs and other DRAMs by SK hynix was 80 percent in the latest quarter, which is good compared to Samsung Electronics 61 percent, according to analysis by Bernstein and DRAMeXchange, Asias biggest tracker in chip pricing and market moves.
The profit margin of SK hynix during the latest period is expected to reach between 25 percent and 31 percent because PC DRAM prices were up 136 percent and 94 percent in spot and contract markets, respectively, since hitting bottom late last year.
Woori Investment said SK hynixs revenue may reach 3.91 trillion won during the period, while its operating profit is expected to reach 1.22 trillion won.
(Excerpt) Read more at koreatimes.co.kr ...
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