However, each company expected performance improvements in the third quarter and the second half of the year. SK Hynix plans to increase production of DDR4 and LPDDR4 DRAM, and Samsung Electro-Mechanics announced that it plans to actively target the Greater China market in the second half of the year by diversifying its supply components.

Revenue from the Home Entertainment Business Division declined compared to the same period last year and the previous quarter due to factors such as the contraction of the global TV market. The Mobile division sold 14.1 million smartphones in the second quarter. Of these, sales of LTE smartphones, including the G4, reached 8.1 million units, marking an all-time high for a single quarter since the company began its smartphone business in earnest in 2010. This is the first time that quarterly sales have surpassed 8 million units.

SK Hynix's operating profit fell 13%

SK Hynix announced that in the second quarter of 2015, it recorded sales of 4.639 trillion won, an operating profit of 1.375 trillion won (operating profit margin of 30%), and a net profit of 1.108 trillion won (net profit margin of 24%).

Due to factors such as slowing PC demand, sales in the second quarter fell 4% from the previous quarter to 4.639 trillion won, and operating profit fell 13% to 1.375 trillion won.

However, driven by robust demand centered on servers and mobile, sales and operating profit increased by 18% and 27%, respectively, compared to the same period last year. Net profit was recorded at 1.108 trillion won, reflecting corporate tax expenses. Shipments of DRAM and NAND flash increased by 4% and 8%, respectively, compared to the previous quarter, while average selling prices fell by 8% and 6%, respectively.

SK Hynix predicted that a favorable market environment for the future DRAM market would continue, driven by increasing demand centered on servers and mobile devices based on high-capacity, high-performance DDR4. It was stated that continuous growth is expected for NAND flash due to the launch of new mobile products and the expansion of the SSD market.

To respond to the changing market environment, SK Hynix plans to increase the production of DDR4 and LPDDR4 DRAM, which are seeing increasing demand, compared to the original plan, while reducing the production of DDR3.

In the case of NAND flash, the plan is to expand the production share of 10nm-class TLC products shipped starting from the second quarter, and to complete the development of 3D 2nd generation (36-layer) products within the third quarter and prepare for small-scale production.

Samsung Electro-Mechanics, revenue down 1.5% from previous quarter

Samsung Electro-Mechanics announced that it recorded sales of 1.6981 trillion won and an operating profit of 80.4 billion won on a consolidated basis in the second quarter.

Sales decreased by 1.5% compared to the previous quarter and by 4.1% compared to the same period last year, while operating profit increased compared to both the previous quarter and the same period last year.

Samsung Electro-Mechanics explained that while sales declined slightly due to sluggish demand from major domestic and international clients and the weak global IT market conditions for PCs and TVs, operating performance improved through efforts to optimize resource efficiency and expand cost reductions.

In the second half of the year, the plan is to actively target the Greater China market by diversifying supply components, and to drive performance improvement by expanding market share with global clients and responding promptly to the launch of new models by strategic clients.

In addition, we will strengthen the competitiveness of the automotive parts business, materials, multilayer thin film forming, and high-pressure materials.We plan to continue preparing for new future businesses by integrating core technologies that leverage our strengths in the fields of circuitry and optical technology.