Samsung today announced its earnings guide for the third quarter of 2014, and unfortunately for Sammy, things aren’t going quite as well as they were at this time last year.
Samsung says that it expects to pull in around 4.1 trillion Korean won ($3.85 billion USD) in operating profit in Q3 2014, which is down significantly from the 10.20 trillion Korean won ($9.54 billion USD) that it earned in Q3 2013. Consolidated sales are expected to drop as well, finishing at 47.0 trillion Korean won, down from the 59.10 trillion Korean won that Samsung got in Q3 2013.
Samsung explains that while its smartphone shipments for the quarter grew, things like marketing costs and dropping average selling prices put a damper on its profits. Cheaper phones from competitors like Xiaomi are likely putting a hurt on Samsung’s mobile dominance, offering consumers quality smartphones for quite a bit less than heavy-hitters like Samsung and Apple.