Tech giant Samsung announces that it expects to receive weaker than projected profit margins for the third quarter. Reporting an operating profit of just under $4 billion USD for the current quarter, which is a significant drop off from the $7 billion USD earned last quarter, Samsung blames a decline in average selling price of its mobile phones as a key reason to the drop in earnings. This speculation comes at a time when the company faces stiff competition from other tech firms — such as Chinese startup Xiaomi — that offer Android capabilities through much cheaper alternative mobile devices. Key competitor Apple has also just released the iPhone 6 and 6 Plus, contributing to increased competition amongst Samsung’s larger-screened high-end phones. Luckily for Samsung, its lead in memory chips is expected to aid the blow from poor mobile phone sales. With Christmas and the gifting season fast approaching, stay tuned to see if profits fickle as the year comes to an end.
- Business Insider