Samsung Q3 operating profits expected to dip by 60 per cent year on year

Even the mobile division is suffering in the face of competition from Apple, Xiaomi and Lenovo

Samsung has announced it is expecting to make just 79 per cent of its projected operating income for Q3 2014, with only 4.1tn won (£2.5bn) expected as opposed to the analysts' projections of 5.2tn won.

This represents a 60 per cent fall in quarterly operating profits on a year-on-year basis.

While the company's wider electronics business - such as its televisions - has been seeing a slide for several years, Samsung is now apparently struggling to maintain dominance in its strongest sector: mobile phones.

Offerings from rivals Lenovo and Xiaomi are attracting the public's interest in Asia, while Apple is still proving stiff competition in Europe and North America.

However, Samsung's smartphone shipments are increasing slightly, the company said, despite the competition.

"The operating margin declined due to increased marketing expenditure and lowered average selling price," it said in a statement.

One contingency plan Samsung is exploring is the opening of a new $15bn semiconductor plant in South Korea, with which is hopes to tap into a growing global demand for memory chips. Samsung still supplies chips to many of its biggest rivals, including Apple.

Construction of the factory will begin next year, and it is due to open in 2017.

Despite the company's fall in profits, its shares rose by 1.6 per cent after the announcement.