Samsung's smartphone earnings fell a whopping 71% in Q3

Samsung Electronics has just announced its Q3 financial results and the numbers are not positive. Overall, the company saw profits dip by an alarming 60% overall from US$9.5 billion to "just" US$3.8 billion. And its mobile division was hardest hit, with profits falling a whopping 71% from US$5.7 billion to US$1.65 billion.

This, however, should not be alarming as Samsung had already warned of declining profits as early as July this year. In that warning, the company expressed its fears that its mobile business would be greatly affected due to increasing competition in the budget segment of the market because of Chinese manufacturers such as Xiaomi and Huawei.

Samsung's high-end smartphones did not do so well either. Most recently, the Note 4 found itself outsold on home soil by Apple's new iPhone 6 and iPhone 6 Plus.

Kim Hyun-Joon, an executive from Samsung's mobile division, said, "“Our high-end smartphone sales result was somewhat weak." And said that the company will "reform" their product portfolio as part of its strategy going forward.

In terms of revenue, overall revenue fell by almost 20%, while revenue for its mobile division was against biggest hit, falling 34%.

Source: DailyTech

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