Samsung Electronics profit sinks 49 percent to lowest in nearly 3 years as handset slows

Industries Associated Press

Samsung Electronics Co. says its third-quarter income has plunged 49 percent to the lowest level in nearly three years as its handset business slows down.

Continue Reading Below

Samsung said Thursday its net income for the July-September quarter was 4.2 trillion won ($4 billion), a sharp decline from 8.2 trillion won a year earlier. The income was the lowest since 2012 but above market expectations. Analysts polled by Factset expected 3.7 trillion won income.

Sales fell 20 percent to 47.4 trillion won while operating income shrank 60 percent to 4.1 trillion won.

Samsung warned earlier this month that its handset profit declined despite a marginal shipment increase. Analysts said the Galaxy S5 smartphone launched in April did not sell well while many consumers held off upgrading their phones instead waiting for new iPhones.