A Drop in Third-Quarter Profit for Samsung Electronics
Samsung is expecting a drop in its operating profits for the 2014 third quarter largely due to the growing competition from Apple and Xiaomi of China.
The smartphone manufacturer of Korean is expecting an operating profit of 4.1 trillion won or $3.8 billion which is a sixty percent drop from its figures that were seen one year back. It is also a 43 percent drop from the preceding quarter.
Samsung is expecting a 60 percent fall in its operating profits in the quarter also due to a reduced margin of profit for its smartphones.
Samsung sees the main reasons of the drop as undermined profitability from its mobile business and also the slackened demand for its System LSI business along with the panel business.
The company said that though it has sold more number of mobiles as compared to the earlier quarter, but there was a drop in the average sales price because of the reduced price of the older as well as the high-end models.
The company said that its TV business also suffered a lowered average sales price as the season catering to high-demand finished earlier than was expected. However Samsung say that in the net or the fourth quarter the sales during the Black Friday is expected to boost demand for smartphones as well as televisions.