Samsung Electronics expects its third-quarter operating profit to fall by almost 60 percent on sluggish sales of mobile devices as Chinese companies eat into its market share with cheaper smartphones.

Revenue is expected to drop 20 percent to about 47 trillion won ($44.2 billion) in the July-to-September period, from 59.08 trillion won a year ago, the South Korean company said Tuesday in an earnings guidance. Operating profit was approximately 4.1 trillion won, compared with 10.16 trillion won in the year earlier period.

The weak demand for wireless devices also hurt Samsung’s logic chip business and OLED panel sales, it said. Intense global competition led the company to shrink its reliance on high-end smartphones and to cut the price of its older products.

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