Samsung Electronics has forecast a 60% fall in quarterly operating profit from a year ago because of slowing Galaxy smartphone sales.
The world’s biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; £2.5bn) for the three months to September.
That is below analysts’ expectations for earnings of 5.2tn won.
The South Korean company will publish full financial results later this month.
Samsung’s mobile division, its biggest business, has been struggling to maintain its dominance against rivals such as Apple and Chinese smartphone-makers Xiaomi and Lenovo.
Its flagship Galaxy smartphone line has been losing market share to cheaper models that also have large screens and multiple features.
The firm said quarterly sales amounted to 47tn won, which was below analyst estimates for 50.3tn won.
“Smartphone shipments increased marginally amid intense competition,” Samsung said in a statement.
“However, the operating margin declined due to increased marketing expenditure and lowered average selling price.”
The company also said it is “preparing new smartphone line-ups featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones”.
via BBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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