Arab Today, arab today slow pc smartphone demand saps sk hynix fourth quarter profit
Last Updated : GMT 21:55:33
Arab Today, arab today
Arab Today, arab today

Slow PC, smartphone demand saps SK Hynix fourth quarter profit

Arab Today, arab today

Arab Today, arab today Slow PC, smartphone demand saps SK Hynix fourth quarter profit

South Korean chipmaker SK Hynix
Seoul - AFP

Slowing global demand for personal computers and smartphones slashed the profits of South Korean semiconductor giant SK Hynix by half in the fourth quarter, the company said Tuesday.

Global PC sales last year hit an eight-year low and sales of high-end smartphones slowed as gadget makers increasingly shifted focus to fast-growing mid- or low-end markets.

As demand for PCs as well as the handsets powered by expensive chips declined, average prices of SK Hynix's dynamic random access memory (DRAM) -- commonly used for PCs -- and NAND flash chips used for mobile devices fell 10 and 15 percent respectively in the fourth quarter.

Net profit for the September to December period amounted to 871 billion won ($725 million), down 46 percent from a year ago, the company said in a statement.

Operating profit also dropped 41 percent to 989 billion won during the same period, missing a 1.04 trillion-won average of analyst estimates compiled by Bloomberg News.

"China's Lunar New Year holiday (in February) and the Rio Olympics (in 2016) may boost demand but their impact will remain very limited," Shin Hyun-Joon, analyst at LIG Investment and Securities said.

"I do not see any major pick-up in demand anytime soon."

SK Hynix vowed to beef up investment and cut costs to overcome "crisis situations" expected this year including sluggish demand and escalating competition among chipmakers like local rival Samsung.

It also vowed to invest 6.0 trillion won this year on corporate infrastructure, including upgrading production capacity of its NAND flash chip plants in Cheongju city south of Seoul.

The company last year announced a plan to spend a whopping $38 billion to build new plants or upgrade existing ones over the next 10 years.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today slow pc smartphone demand saps sk hynix fourth quarter profit Arab Today, arab today slow pc smartphone demand saps sk hynix fourth quarter profit

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today slow pc smartphone demand saps sk hynix fourth quarter profit Arab Today, arab today slow pc smartphone demand saps sk hynix fourth quarter profit

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today Sally Shaheen considers hosting a political show
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday