Samsung DRAM leader, Hynix gains share in Q3 -iSuppli

TAIPEI, Nov 16 (Reuters) - South Korea's Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) retained its spot as the world's top DRAM seller in the third quarter, but lost share to cross-town rival Hynix (000660.KS: Quote, Profile, Research, Stock Buzz), U.S. Market research firm iSuppli said.

"Hynix was the star performer in the global DRAM industry in the third quarter, outgrowing the other major suppliers and closing its market share gap with No.1 Samsung Electronics," iSuppli said in a report released late on Thursday.

Samsung controlled 27.7 percent of the global DRAM market in terms of revenue in the third quarter, down from 28.3 percent in the second quarter.

Hynix bolstered its No. 2 position, winning 22.8 percent in the third quarter versus 20.6 percent in the second. Qimonda (QI.N: Quote, Profile, Research, Stock Buzz) came in third with 12.2 percent, down from 13.5 percent.

Among the top 5 DRAM sellers, Hynix was the only one to achieve year-on-year revenue growth amid a sector downturn that has seen prices drop sharply.

In terms of revenue, the DRAM sector generated $7.96 billion for the third quarter, up a modest 8 percent from the second.

As dynamic random access memory (DRAM) prices have recently dropped, global DRAM sales in the the third quarter were disappointing, with high inventory levels in the supply chain dragging on the sector, iSuppli said.

Average per-megabyte DRAM pricing fell 1.5 percent in the third quarter from the second, compared to iSuppli's previous estimate of a 3 percent increase, the data firm said.

However, iSuppli said it had begun to see a more balanced supply and demand condition in the sector, which should bolster pricing and supplier profitability in the future. (Reporting by Sheena Lee; Editing by Anne Marie Roantree)