Ouch: Samsung warns of 60% profit drop as sales slow

Gigaom

Samsung warned investors on Tuesday that amid falling sales, profits would be down. Way down.

How much? Around 60 percent from the year ago quarter when the company earned 10.2 trillion Korean won (US $ 9.5 billion). Samsung says in its third fiscal quarter of 2014 it will earn 4.1 trillion Korean won. Sales will be lower from last year’s third quarter as well, but not in such a dramatic fashion: Samsung expects sales to top 47 trillion Korean won; down from the 59.10 trillion a year ago.

This isn’t the first sign of Samsung’s slowdown. In July, the company also issued new lower guidance for investors as tablet and phone sales weren’t growing.

Galaxy S5 copper

And there were other hints as well: The new Galaxy S5 flagship phone released earlier this year sold 11 million units in the first month of availability. I noted that was only a 10 percent…

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