Smartphone competition drags down Samsung in Q3

Operating profit and sales plummet in the double digits year on year

Intense competition in the smartphone space was partly behind a projected 60 per cent profit slump at Samsung in Q3.

Operating profit for the three months to 30 September is due to fall 60 per cent year on year to 4.1tn won (£2.5bn), according to earnings guidance published today. Sales are expected to slump 20 per cent to 47tn won over the same period.

The firm said its results were partly down to "declines in the mobile business due to intensified smartphone competition".

In a statement Samsung said: "Smartphone shipments increased marginally amid intense competition. However, the operating margin declined due to increased marketing expenditure and lowered average selling price."

Samsung expects an uncertain Q4 but is hopeful that new devices and a Christmas boost will help sales.

"[We] cautiously expect increased shipments of new smartphones and strong seasonal demand for TV products," it said.

"Samsung is preparing new smartphone lineups featuring new materials and innovative designs, as well as a series of new mid- to low-end smartphones with strong competitive positioning on both hardware specifications and price."