Samsung has announced its latest financial results for quarter three of 2014, the company’s operating profit for the quarter was $3.9 billion.
This is actually down for the same period last year where Samsung posted record profits of $9.6 billion, so the company has see a drop in profits of more than 50 percent.
The main reason for the decline in Samsung’s profits is because the company hasn’t managed to make as much money from smartphone sales as it has in the past.
Samsung managed to make a profit of 6.7 trillion won in the same quarter last year, this year, it hat a profit of just 1.75 trillion won, which is a considerable drop in profits.
The company has said that price reductions for older models and also declined shipments of high end models has caused it profits to fall, so it looks like sales of the company’s flagship Galaxy S5 have not been as high as expected.
Samsung recently launched their new Galaxy Note 4 smartphone, sales of this device are not included in the earnings report, so it will be interesting to see if this can help the company sell more handsets.