6 October 2014
Last updated at 20:50 ET
The success of its smartphones has been a key driver of Samsung's growth in recent years
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.
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 (ASP) driven by reduced proportional shipments of high-end models coupled with price decreases for older smartphone models."
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.
Samsung Electronics forecasts 60% fall in quarterly profit
The success of its smartphones has been a key driver of Samsung's growth in recent years
Samsung
Electronics has forecast a 60% fall in quarterly operating profit,
missing estimates, because of slowing Galaxy smartphone sales.
That is below analysts' expectations for earnings of 5.2tn won.
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 (ASP) driven by reduced proportional shipments of high-end models coupled with price decreases for older smartphone models."
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 has been hurt by a global fall in memory chip prices
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.
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