Samsung has announced third-quarter earnings that put it on course for its worst year since 2011.
Between July and September the global smartphone leader’s market share declined in annual terms for the third straight quarter and its operating profit was down by 60 percent from the same period last year.
Profit for the mobile division fell 73.9 percent as Samsung spent most of the quarter without launching a new flagship device.
Lagging behind Apple in the premium market, and overtaken by cheaper Chinese rivals at the bottom end, it plans to revamp its lower-tier smartphones to boost price competitiveness.
Another strategy will be to use higher-quality components to set its devices apart.
“The mid-to-low end market is growing rapidly, and we plan to respond actively in order to capitalise on that growth,” Samsung Senior Vice President Kim Hyun-joon said during a conference call with analysts.
Robert Yi, Samsung’s head of investor relations, said the firm would launch new mid-tier models in the fourth quarter, although he didn’t specify what features they would have.
Samsung predicted the average selling prices for its handsets will rise in the fourth quarter due to an increase in premium smartphone sales as demand picks up in the holiday shopping season.
It also expects profits to pick up near the end of the year on strong demand for televisions and memory chips. The chips division was a bright spot in the July-September quarter.