SK Hynix Q2 profit falls 67 percent

The South Korean memory chip maker saw its operating profit fall a steep 67.1 percent year-on-year due to falling prices of DRAM and will hope for a rebound in the second half when its new flagship smartphone launches.

SK Hynix saw its operating profit drop 67.1 percent from a year ago to 452.9 billion won ($397 million) due to falling prices of DRAMs in the second quarter.

Net profit was 286.1 billion won for the quarter, a drop of 74.2 percent, it said in its earnings reports.

The company has been suffering from an overall decline in the PC market -- its DRAMs headed for computing is its main revenue source. It saw its profit drop 18 percent in the first quarter.

It has been increasing DRAM for mobile and NAND flash ratios to adapt to the changing atmosphere.

DRAMs for mobile devices rose and demand recovered for computing DRAMs in the quarter, shipment rising a total of 18 percent from the previous quarter, but it was not enough to offset low prices.

Meanwhile, NAND flash shipment rose 52 percent from the previous quarter thanks to those headed for mobile devices and solid-state drives (SSD).

SK Hynix said it expects demand for DRAM will rise going forward, mostly from increased production volume by Chinese smartphone makers. NAND flash will increase to thanks to new flagship phones to be launched in the second half of the year with higher memory capacity.