Samsung expects fourth quarter operating profit drop

Samsung shipped 117 million mobile phones in the third quarter for a leading market share of 25.7 percent to Nokia’s 13.8 percent share and Apple’s 6.7 percent, research firm Gartner reported in November. But there have been concerns that increased competition has put pressure on the company’s margins.

Samsung Electronics has given guidance that its operating profit in the fourth quarter of 2013 is likely to be down from the same quarter a year ago, although sales may have grown marginally. The company issued the guidance ahead of full results later this month. Samsung said Tuesday that it expected operating profit in the fourth quarter to be 8.3 trillion Korean won (US$7.8 billion), down from 8.84 trillion won in the same quarter last year. Revenue is expected to go up to 59 trillion won from 56.06 trillion won a year earlier, the company said.