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| Samsung Electronics forecasts 60% fall in quarterly profit | Samsung Electronics forecasts 60% fall in quarterly profit |
| (35 minutes later) | |
| Samsung Electronics has forecast a 60% fall in quarterly operating profit, missing estimates, because of slowing Galaxy smartphone sales. | |
| The world's biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; £2.5bn) for the three months to September. | The world's biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; £2.5bn) for the three months to September. |
| That is below analysts' expectations for earnings of 5.2tn won. | |
| The company's full financial results will be released later this month. | The company's full financial results will be released later this month. |
| Samsung's mobile division, its biggest business, has been struggling to maintain its dominance against rivals such as Apple and Chinese smartphone-makers Xiaomi and Lenovo. | |
| Its flagship Galaxy smartphone line has been losing market share to cheaper models that also have large screens and multiple features. | |
| The South Korean company said quarterly sales amounted to 47tn won, which was below analyst estimates for 50.3tn won. | |
| "Smartphone shipments increased marginally amid intense competition," Samsung said in a statement. | |
| "However, the operating margin declined due to increased marketing expenditure and lowered average selling price." | |
| The company also said it is "preparing new smartphone line-ups featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones". | |
| Samsung shares rose 1% in early trading in Seoul. | |
| Chip plant | |
| Samsung announced on Monday that it would spent about $15bn on a new semiconductor plant in South Korea, to meet the growing demand for memory chips. | |
| It is set to be the biggest single investment on a chip factory, and construction will begin in the first half of next year with operations due to start in 2017. | |
| Samsung is a major chip supplier to other electronics firms, including major rival Apple. | |
| Samsung is also facing some pressure at its consumer electronics division, which makes televisions, air conditioners and other appliances. | |
| Sales and overall profit are forecast to have dropped because currency fluctuations made Japanese-made rival products cheaper to buy. | |
| The Korean won strengthened about 3.5% against the Japanese yen in the third quarter. |