Samsung reports 74% drop in mobile profits as Galaxy sales continue to decline

After warning investors that its third-quarter financial results will once again miss analyst expectations, Samsung on Wednesday reported a 74% drop in mobile profits during the three-month period ending September. The reason behind the significant decline: not as many people are buying the latest Galaxy smartphones as they used to.

A number of reports have claimed that Samsung’s flagship Galaxy S5 released in April has not sold as well as the models released ahead of it, as many consumers opted to wait an additional five months to purchase the oft-rumored iPhone 6 and iPhone 6 Plus. The result is Samsung’s lowest third quarter earnings since three years ago.

Samsung reported overall quarterly net profit of 4.2 trillion won ($4 billion) and quarterly operating income of 1.75 trillion won ($1.66 billion) during the third quarter. For the first time since the third quarter of 2011, the company’s semiconductor business actually generated more profit than its mobile communication business.

Samsung expects its quarterly earnings to rise during the fourth quarter period of October through December, but the Associated Press reports that those gains will be driven by its memory chip business rather than a rebound in Galaxy sales. Its mobile uncertainty will likely continue into the holiday shopping season.