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SK Hynix Q2 profit triples as stay-at-home demand lifts chip prices
[SEOUL] SK Hynix, the world's No.2 memory chip maker, said on Thursday its quarterly operating profit tripled, beating analysts' forecasts, as demand for cloud services and online education amid the Covid-19 pandemic drove up chip prices.
SK Hynix expected uncertainties will continue in the second half due to Covid-19 and global trade disputes, but forecast improving demand for chips used in 5G smartphones and game consoles as major markets resume economic activities.
The South Korean company that counts Apple Inc and Huawei Technologies among its customers, said operating profit in the April-June period rose to 1.9 trillion won (S$2.26 billion) from 638 billion won a year earlier.
Analysts expected a 1.7 trillion won profit, according to Refinitiv SmartEstimate that is weighted towards more consistently accurate analysts.
Second-quarter revenue rose 33 per cent to 8.6 trillion won.
Memory chip prices rose in April-June due to increased server and notebook demand from people staying at home as well as customers stockpiling chips, some analysts said.
But Hynix and its bigger rival Samsung Electronics may be forced to lower prices from the current quarter, they added, offsetting some recovery in smartphone demand and new game console releases.