Samsung has warned that profits will drop for the first time in more than two years in its fourth fiscal quarter as the vendor faces stiffer competition in the smart phone market.
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The vendor has revealed that it is expecting to deliver a sequential drop of 18% in operating profits in the fourth quarter, down to £4.8bn compared to Q3, and a 6% decline year-on-year.
Revenue increased by 5.3% but still managed to miss forecasts and delivered the slowest growth that the firm has produced since 2011, with the finger of blame being pointed at stiff competition at both the low and high ends of the smart phone market.
The vendor will deliver its full results later this month but has already seen a slight dent in its share price following the issuing of the guidance over fourth quarter performance to shareholders.
In the last three months Samsung faced competition from Apple, with its latest models, at the top end of the buying spectrum as well as a number of other players that are nibbling away at market share at the bottom end of the market.