Samsung Galaxy S4 memory to come from rival

Samsung to source memory from rival as supply tightens

18 Apr 2013

Samsung is considering purchasing mobile memory from rival chipmaker Hynix for future products including its new flagship Galaxy S4 smartphone, according to JK Shin, head of Samsung's mobile business.

A supply deal would be a boost to Hynix, which relies heavily on Apple as a customer for its mobile dynamic random access memory (DRAM) chips.

It also points to tightening chip supplies as mobile gadget makers prepare to upgrade their flagship product lines with greater variety and increased memory storage capacity.

Prices of mobile DRAM chips have increased steadily since early this year, reflecting a tightening supply outlook.

Samsung, the world's biggest maker of DRAM chips, has largely depended on internal supplies of memory chips for its Galaxy range of smartphones, but the market has expanded, leaving the company to seek outside suppliers to ensure there are no supply disruptions for key models of its Galaxy range.

The Galaxy S4, which will go on sale later this month, is expected to outsell its predecessors, with monthly sales of about ten million, and could leapfrog past Apple's iPhone, which recaptured the top spot in global smartphone sales in the fourth quarter, analysts said.

Shares in Hynix dropped 2.8% in trading after Apple suppliers were hit by concerns of weaker demand from the iPhone and iPad maker, after a disappointing revenue forecast by one of its suppliers.

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