Sk hynix profits fall 69% in Q1 2019

SK Hynix predicted that demand for its DRAM chips used in smartphones will increase this year. Meanwhile, the world's second largest memory chip maker saw its operating profit drop by more than two-thirds in the first quarter as prices fell.

SK Hynix sees its profits fall 69%

Korean chipmakers, led by giant Samsung Electronics, have enjoyed record profits in recent years as prices for their products soared. But demand has started to decline as global market supply is increasing after manufacturers invested billions in new factories.

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SK Hynix supplies reports to companies from Apple to Huawei, and recorded operating profit of 1.4 trillion won ($ 1.21 billion) in the period from January to March, a 69% reduction compared to with the same period last year.

Revenue fell 22% and net revenue plummeted 65%

Sales of DRAM chips, which are commonly used in smartphones and computer servers, fell eight percent quarter-on-quarter, due to a "seasonal slowdown and conservative purchase of servers , " the chipmaker said in a statement.

The firm expects demand for DRAM chips to pick up later this year and for new smartphones to adopt its high-density chips.

"In a market where uncertainty about memory demand and expectations of demand recovery coexist, SK Hynix will focus on cost reduction and quality assurance, " they said with some concern.

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