On Tuesday, Samsung Electronics warned investors that earnings for its third quarter would be lower than market expectations. The company says it anticipates reporting an operating profit of $3.8 billion for the three-month period ending in September—a decline of nearly 60% year-over-year.
Samsung cites a few reasons for the drop off, including heightened competition in the smartphone market. While the tech giant is selling plenty of handsets, higher marketing costs, fewer shipments of high-end phones and lower average selling prices have negatively impacted operating margins.