CNN reports that Samsung earnings plunged in the third quarter as the company's smartphone business was squeezed by competitors at both ends of the cost spectrum. The South Korea-based firm posted operating profit of 4.1 trillion won (US$3.9 billion) for the third quarter -- a 60% decline from the previous year. The CNN video shows how shoppers in Hong Kong strongly favor Apple's new iPhone 6 and 6+ over any smartphone from Samsung.
A Korean report added that on Thursday "Samsung Electronics said that the chances of the company seeing any substantial improvement in earnings in the fourth quarter were small as it needs to revamp its mobile business."
Robert Yi, chief of the firm's investor relations team, said in a conference call to investors and analysts that "We have to admit that Samsung failed to respond to the new market order in smartphones, with profits sliding for the second straight quarter."
Kim Hyun-joon, a senior executive at its mobile division, said the outlook for the fourth quarter in smartphones "wasn't looking good" as competition will get fiercer. "That will probably hurt our profitability," Kim told analysts.
Earlier this month we correctly reported that Samsung's profits had fallen by 60% and so today's final report isn't a surprise, though technically it's now "official" and we got to hear a little more commentary from Samsung officials. We reported yesterday that beyond this quarter, Samsung's four year business plan had failed.
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