SK Hynix boosted by smartphone chip sales SK Hynix, the world's second-largest memory chipmaker by sales, has reported its first quarterly profit in a year on the back of rising sales of higher-margin mobile chips used in smartphones and tablets, although demand for computer chips remained sluggish. The South Korean company said on Wednesday that it expects stronger demand for memory chips toward the end of the year, helped by new mobile devices such as Apple's iPad mini and other devices based on Microsoft's next-generation Windows 8 operating system set to be introduced later this week. The chipmaker swung to a Won2bn ($1.8m) net profit in the July-September period from a Won563bn net loss a year earlier. It also reported a narrower operating loss of Won15bn, compared with a Won276bn loss a year ago, while sales increased 5.8 per cent to Won2.4tn. Analysts expect the company to report an operating profit in the fourth quarter as it is likely to benefit from Apple's increased orders for mobile chips, with the technology giant trying to reduce its reliance on rival Samsung Electronics for components amid continued legal wrangling over technology patents. Hynix was optimistic about demand for mobile D-Ram chips - higher-margin chips used in smartphones and tablets - which now account for more than 30 per cent of its total D-Ram revenue. D-Ram chips account for about 70 per cent of the chipmaker's revenue while Nand flash memory chips account for around 25 per cent. "Due to an increase in new mobile products such as smartphones and tablet computers, demand for both D-Ram and Nand flash memory chips will continue to rise," SK Hynix said in a statement. D-Ram shipments fell 5 per cent in the third quarter from the previous quarter while the average selling price declined 8 per cent. But Nand flash shipments increased 5 per cent with the average selling price rising 4 per cent quarter-on-quarter. Hynix expected D-Ram prices to stabilise in the coming months as memory chip producers cut back on their investment in capacity. Japanese chipmaker Toshiba said in July that it will cut its Nand output by 30 per cent. "Given that memory-chip fundamentals have been weak with low earnings and marginal cash flows, we see further downside to the industry's capital investments for 2013," Daiwa Securities said in a report. SK Hynix expects a higher-teens percentage growth in memory chip shipments in the fourth quarter from the previous quarter. The company's shares jumped 4.3 per cent to Won24,050 on Wednesday morning on the better than expected earnings, outperforming the benchmark Kospi index, which fell 0.6 per cent.