Caught between China and low-cost phones, Samsung’s mobile profits plunge

Gigaom

Samsung may have to look beyond the Galaxy to find phone profits. The company announced its third quarter results on Thursday and, even with a preemptive warning earlier in the month, the news is grim: Mobile profits fell 74 percent from the year-ago quarter, notes the Wall Street Journal.

Galaxy Note Edge white

The mobile division brought in 1.75 trillion Korean Won (U.S $1.65 billion), which nears profit levels the company earned in early 2011. Sales pressure pushed profit margins down to seven percent, according to the WSJ. By comparison, Apple’s iPhone margins are routinely five to six times that figure and the handset contributed more than 56 percent to the company’s total revenue in the most recent quarter, even though Apple sells far fewer phones than Samsung.

Galaxy s5 versus iPhone 5s

China is surely a big, or at least growing factor, in Samsung’s sales woes. The company was just displaced by China-based Xiaomi as the top…

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