Samsung is preparing for a 60 percent profit drop this quarter and is forecasting and operating profit of US $3.8 billion, which is a massive decline compared to the same quarter last year.


The big drop in profit comes as a big surprise considering good predictions from analysts due to the fact that the company has just launched its Galaxy Note 4 smartphone as well as managed to get great results with the recently launched Galaxy S5 smartphone.

Samsung's total sales for the Q3 2014 are expected to hit at around US $43.9 billion which is a 20 percent drop compared to the same quarter last year. The 59.7 percent drop in profits will be the biggest drop the company has seen in five years. This is also the fourth straight quarterly drop and comes as a result of Samsung's battle with recently launched Apple iPhone 6 and iPhone 6 Plus smartphones in established markets as well as the fact that Huawei and Xiaomi are doing well in emerging markets.

According to Sanford Bernstein analyst Mark Newman, memory department will be the only strong point on Samsung’s report. Samsung full earnings report is scheduled to be published later this month.



Source: Techspot.com.