Samsung Electronics forecasts 60% fall in quarterly profit
The company's mobile division has struggled against rivals
Samsung Electronics is expecting a 60% decline in quarterly operating profit for the third quarter of 2014, online sources reported.
This will be the company's fourth straight quarterly drop as the South Korean electronics giant said it expects to record an operating profit of $3.8bn for the quarter ended 30 September.
"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".
Samsung noted during its second-quarter earnings report in July that its earnings were hurt by increased price competition, and it was hard to sell its older 3G phones in China as the country shifts to 4G LTE technology. Those factors contributed to a 30% drop in profits in Samsung's mobile division in the June quarter and caused the company to warn that the second half of 2014 would remain a challenge.
According to IDC, of the five largest smartphone vendors in the world, Samsung was the only one that saw shipments fall year-over-year in the second quarter.
Its flagship Galaxy smartphone line has been losing market share to cheaper models that also have large screens and multiple features.
The company's full financial results will be released later this month.