Samsung's results for Q3 2014 are expected to show a year-on-year profit decline of 60 percent, the company has warned.
Analysts had expected the company to generate operating profits of 5.2 trillion won ($5.5 billion) in the last quarter. However, it has issued an advanced notice ahead of the official publication of its results that the figure will be closer to 4.1 trillion won ($4.4 billion).
In the same quarter last year, the company generated 10.6 trillion won ($11.3 billion) profit.
The figure also represents a quarter-on-quarter decline, falling from 6.3 trillion won in Q2 2014, a drop of 66 percent.
In a statement to the BBC, Samsung claimed smartphone shipments had "increased marginally amid intense competition" but that its operating margin declined "due to increased marketing expenditure and lowered average selling price".
"[We are] preparing new smartphone line-ups featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones," it added.
End of an era?
Samsung's revenues and profit margins rose spectacularly over 2012 and 2013, driven by sales of its Galaxy handset range, as well as high-end TVs.
In its Q2 statement, the company did warn the record-breaking earnings it had been posting over the previous two years may not last, partly due to the traditional replacement cycle of handsets and tablets.
Nevertheless, it also said at the time it was cautiously optimistic about this quarter and expected the release of its new smartphone range to boost revenue.
Seoul-based analyst Song Myung Sup told Bloomberg: "We can’t really expect good news from Samsung’s mobile business this year."
"To reverse the current tide, the company should bring out the Galaxy S6 with flexible screens," Song added.
This article originally appeared at pcpro.co.uk
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