Investing.com – South Korean chip giant SK Hynix Inc (KS:)’s share prices rose 2.3% on Thursday in Asia after reporting better-than-expected profit in the third quarter.
The company announced that operating profit came in at 473 billion won ($404.68 million), which was a 93% plunge as compared to the previous year’s quarter, but higher than the estimated 418 billion won.
The drop in profits was mainly due to declining prices of memory chips for smartphones, the company said, adding that the amount of money set aside for investment in 2020 would be “considerably lower than this year.”
“DRAM prices remain weak during the quarter, leading to a 16 percent drop in the average selling price,” SK Hynix said.
The chipmaker said it will “effectively deal with demand fluctuations due to external uncertainties”, noting that it expected chip prices to recover in 2020 as demand rises for ultrafast 5G handsets.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.