Korean manufacturer Samsung has released a statement predicting a 60% decrease in earnings for Q3, compared to the same period last year.
Samsung expects operating profit for Q3 to be between 3.9 and 4.3 trillion Korean won (around $2.3 billion).
Samsung cites greater competition in the smartphone market, which has decreased the average selling price (ASP) of its phones. Its statement read: “Smartphone shipments increased marginally amid intense competition. However, the operating margin declined due to marketing expenses related to aggressive promotions and lowered ASP driven by reduced proportional shipments of high-end models coupled with price decreases for older smartphone models.”
Samsung has faced increasing competition on the Android OS from Chinese manufacturers at cheaper price points, and at the high end from Apple’s iOS products.
It adds: “For the S.LSI and OLED panel businesses, shipments decreased and profitability weakened due to weaker demand for mobile products.”
It continues: “Earnings for the CE business declined substantially quarter-on-quarter due to reduced ASP of TVs and an earlier-than-expected end to the peak summer sales season of home appliance products, such as air conditioners.”
