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Samsung's DRAM Q2 revenue falls despite market share gain: report

Samsung Electronics Co. raised its share in the global DRAM market in the second quarter thanks to some recovery demand in the server sector, but revenues fell due to slumping prices, a market researcher said Friday.

Samsung's market share in the DRAM market stood at 45.7 percent in the April-June period, up 15 percent from three months earlier, but revenue declined by 2.7 percent to US$6.8 billion due to a sharp fall in prices, DRAMeXchange said.

DRAM Market Share

Its smaller rival SK hynix Inc.'s shipments increased by 13 percent over the three-month period to a market share of 28.7 percent, but falling prices drove down its revenue by 12.6 percent to $4.3 billion over the period, according to the chip market tracker.

The two South Korean memory chip makers supplied a combined 74.4 percent of DRAM in the global market.

American chip maker Micron's shipments remained flat compared to the previous quarter due to a trade dispute between the United States and China, losing some market share to 20.5 percent.

Samsung's operating profit margin fell least among the top three from 48 percent to 41 percent, while SK hynix's margin plunged from 44 percent to 28 percent due to investment in plant construction, it said.

Although DRAM spot prices made some gains following Japan's implementation of stricter export controls in South Korea on July 4, the market researcher said it would have a limited effect in boosting contract prices of DRAM in the third quarter.

A spot price is the current price traded in the market, while contract prices are negotiated as monthly or quarterly deals, creating price gaps between the two.

"Although the Japan-South Korea incident over material exports at the beginning of July caused prices to bounce in the spot market, the scale of the spot market is too small to effectively clear the large inventory levels held by suppliers in the third quarter looking forward," DRAMeXchange said in a report. "Furthermore, end demand was weak, and contract prices kept on falling in July." (Yonhap)

Paul Kim  edt@koreapost.com

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