Faced with growing competition from makers of cheaper high-end, large-screen Android smartphones, Samsung has warned that operating profits could be 60pc down on last year.
The Korean manufacturer is facing competition on a number of fronts, most notably from China where emerging players like Huawei and Xiaomi are making cheap but stylish high-end Android smartphones and tablets, undercutting Samsung by as much as 50pc.
Not only that but Apple has now entered Samsung’s domain of large smartphones, recently launching its iPhone 6 4.7-inch smartphone and its iPhone 6 Plus 5.5-inch smartphone.
Samsung in a Q3 guidance note indicated that sales would be down from 59.10 trillion won in Q3 2013 to 47.0 trillion won.
Operating profit is expected to come in at 4.1 trillion won, down substantially from 10.2 trillion won this time last year.