Despite incredible efforts to get on track, Samsung has announced that it still expects a drop of 60 percent in its operating profits for the third quarter of 2014. This will be the company’s fourth straight quarterly drop. Also Read - Galaxy S21 FE to support 25W charging but will Samsung put it in the box?
Last quarter, the Korean technology giant had said that its record-breaking quarterly earnings won’t last forever, but it seems the company has failed to lure customers who now have a wide-range of alternatives to look at. Samsung said that it expects 4.1 trillion won or $3.8 billion for the third quarter which ended on September 30. This will be roughly 60 percent drop from a year-ago when it clocked an operating profit of $10.6 trillion won. It expects 47 trillion won of sales, which would also be 20 percent less than last year’s third quarter total. Also Read - Samsung Galaxy M32 launch in India next week: Top specs, price around Rs 15,000, more
Samsung says that its smartphone shipment, which usually accounts for two-third of the Samsung’s operating profit were affected by higher marketing costs. The company also notes that selling high-end phones at cheaper prices hasn’t worked in its favor either. Also Read - Apple sells more iPads in early 2021 than ever, grows along with Samsung
Last quarter, the company said that it will be releasing several high-end devices at affordable price range, and use materials better than plastic to make better impression towards the customers.
The company despite selling its high-end phones at cheaper price is struggling to withstand in emerging markets where low-cost handsets from manufacturer like Xiaomi, Motorola, and other local brands are giving it a stiff competition.