Samsung Reports Quarterly Profit Decline, Blaming Competition From Other Smartphone Makers

The company reported operating profit of 7.9 trillion won, which is about $7 billion U.S. That's down from 9.53 trillion won a year ago.

Revenue was $52.35 trillion won, or about $51 billion U.S., which is down from 57.46 trillion won a year ago.

However, the report shouldn't come as a surprise. Samsung warned that its smartphone sales were declining when it provided earnings guidance for the quarter earlier in July.

Samsung blamed increased competition from other smartphone makers in China and Europe for the decline in sales. Several companies are able to make smartphones that offer similar features as Samsung phones but cost a lot less.

The company also blamed increased costs in the production of its flagship Galaxy S5 smartphone.