Samsung confirms its quarterly profits fell by 59.65% to $4.35 billion, despite increased smartphone shipments

Samsung Electronics has confirmed speculation about a big fall in its quarterly profits, which fell by 59.65% to 4.1 trillion Korean won ($4.35 billion) in the third quarter, down from 10.16 trillion a year earlier.

Samsung also revealed its year-to-date profit now stands at 19.78 trillion won, down 30.52% from 28.47 trillion won at this time last year.

The fall in profit came alongside a 20.45% fall in revenues, from 59.08 trillion won a year ago to 47 trillion won this year.

In a statement to investors, Samsung said while its shipments increased in the quarter despite intense competition, aggressive marketing and a lower average selling price (ASP) hurt revenues, with the company selling a lower proportion of high-end devices.

The result was compounded by weaker results in its consumer electronics division including a lower ASP for TVs, which in turn reduced revenues for the company’s OLED display manufacturing business.

The fourth consecutive quarterly fall in profit comes after profits fell 24% year-on-year in the June quarter to 7.2 trillion won, with the conglomerate responding with a  restructure of a number of affiliated companies.