Samsung is telling investors and shareholders to lower their expectations for the company's third-quarter earnings. Samsung's profits largely come from mobile, but the company is blaming lower average selling prices and increased competition from all tiers, including the low-to-mid-end smartphone makers like Xiaomi and LG, as well as the high-end companies like Apple.
Similar to Samsung's tumbling profits, the company's smartphone revenue seems to be in decline. Based on Samsung's data charted for us by BI Intelligence, Samsung's handset revenue peaked in mid-2013, just as the Galaxy S4 smartphone was hitting its stride. Meanwhile, Apple's biggest phone measured just 4 inches, so Samsung's popular phablets had no competition from the high end. And Xiaomi, now China's biggest smartphone maker, was still working on rolling out its popular Mi3 smartphone (it didn't reach most of the big markets in Asia and Europe until March of this year) and had yet to open its first retail store.
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