Samsung is experiencing its weakest results so far as the South Korean tech giant company is losing ground on its smartphone sales.
Samsung reported Tuesday its $3.8 billion profit for the third quarter. This is a 60 percent drop from its income last year. The result is even worse than what analysts had initially expected.
Besides the significant downward slope in its profits, Samsung also saw a steep decline in its sales during the third quarter to $44 billion, which is a 20 percent drop compared to last year’s sales.
These numbers are still preliminary forecasts. Samsung is yet to release an official report in the following weeks. So far, Samsung’s stock has decreased by 15 percent this year.
According to the company, the downward trend is due to slow growth and the lower operating margins they have experience, especially with high-end competitors like Apple.
In a different angle of the smartphone industry, it seems like upcoming smartphone companies like China’s Xiaomi have taken a chunk of customers from Samsung.
What Samsung is currently experiencing is happening to the entire smartphone industry where declining margins and increasing saturation is becoming a trend.