Dawn Chmielewski, reporting for Recode:
The company said it would report an operating profit of $3.8 billion for the quarter ending in September — a decline of nearly 60 percent from the same time a year earlier. Sales fell to $44 billion, off 20 percent from a year ago. […]
The South Korean electronics giant said that while smartphone shipments increased, its operating margins fell because of higher marketing costs, fewer shipments of high-end phones and a lower average selling price for the devices.
The company said it is responding with a new smartphone lineup that will include new mid-range and low-end devices, which would make Samsung’s products more competitive in markets such as China.
A new lineup of mid-range and low-end devices… Yup, that’s where the profits are.