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Smartphone shipments, which typically account for two-thirds of the Samsung's operating profit, increased marginally in the quarter, but margins were hurt by higher marketing costs and lower selling prices for the company's high-end handsets, the company said. Analysts had broadly expected the third quarter to be a tough one for Samsung -- with the company likely posting its biggest declines in about five years. They projected Samsung's operating profit would tumble about 42 percent to $5.9 trillion won ($5.52 billion) while its sales were expected to drop 14 percent to $50.9 trillion won ($47.6 billion), according to Thomson Reuters.

"Q3 earnings is expected to be weak, brought down by poor performance in smartphones, with memory remaining the only strong point," noted Sanford Bernstein analyst Mark Newman, Samsung needs a jolt, The company -- the world's biggest smartphone vendor u unique iphone case by a wide margin -- is being pressured in emerging markets by low-cost handset vendors such as Xiaomi and Huawei, It's also facing stiff competition from Apple in the market for pricey, high-end smartphones, especially since Apple in September launched two bigger screen iPhones..

Of the five largest smartphone vendors in the world, Samsung was the only one that saw shipments fall year-over-year in the second quarter, according to IDC. And Fitch Ratings, a major credit rating agency in the US, predicted in mid-August that Samsung's global smartphone market share would fall to 25 percent in 2015 from 31 percent this year. Samsung admitted during its second-quarter earnings report in July that excess inventory in China and Europe caused device sales to slide and increased the amount it spent on marketing to counteract the issue. It also noted that its earnings were hurt by increased price competition, and it was hard to sell its older 3G phones in China as the country shifts to 4G LTE technology. Those factors contributed to a 30 percent drop in profits in Samsung's mobile division in the June quarter and caused the company to warn that the second half of 2014 would remain a challenge.

CNET's Shara Tibken contributed to this report, The electronics giant blames higher marketing costs and lower handset sales prices for its fourth straight quarterly drop, Three months after warning that the second half of 2014 would "remain u unique iphone case a challenge," Samsung announced Monday it expects a decline of nearly 60 percent in its operating profit for the third quarter of 2014, its fourth straight quarterly drop, Be respectful, keep it civil and stay on topic, We delete comments that violate our policy, which we encourage you to read, Discussion threads can be closed at any time at our discretion..

The group will determine whether certain Samsung devices -- including the Galaxy Note Edge, Galaxy Note 4 and Galaxy S5 -- should be banned from sale in the US because the chips powering the products infringe graphics patents owned by Nvidia. "We are pleased with the ITC decision today to open an investigation and look forward to presenting our case on how Nvidia GPU patents are being used without a license," David Shannon, Nvidia executive vice president and chief administrative officer, said in a statement.

Samsung did not immediately respond to a request for comment, Qualcomm didn't immediately have a comment, Nvidia, which is best known for making graphics chips for PCs, last month filed lawsuits involving seven of its patents with the ITC and US District Court in Delaware, At the time, the Santa Clara, Calif., said it asked the ITC to block shipments of several Samsung smartphones and tablets to the US and requested the district court award damages for the alleged infringement, At question is whether chips made by Samsung and Qualcomm infringe Nvidia's patents related to graphics, Samsung has tended to use Qualcomm's processors in u unique iphone case its high-end devices, The Note 4, for instance, uses a Snapdragon 805 chip, Samsung also uses its own Exynos chips in some models, particularly those sold in Korea, The devices mentioned in the suit involve Qualcomm's Adreno graphics, ARM Holdings' Mali technology and Imagination's PowerVR graphics architecture, which are three of Nvidia's main competitors in mobile graphics..

The products involved include several major devices from Samsung -- the largest smartphone maker in the world -- including the Galaxy Note Edge and Note 4 smartphones, which Samsung unveiled Wednesday, as well as the company's flagship Galaxy S5 and Galaxy S4 phones. The Note 3 was also mentioned, as were several Samsung tablet computers, including the Galaxy Tab S, Tab 2 and Note Pro . Since the litigation involves hundreds of millions of Samsung devices, potential damages from a successful suit could be huge for Nvidia. "The volume here alone makes the potential very significant," Shannon told CNET last month.

Nvidia's suit is only the latest in a series of lawsuits in the hot mobile sector, Samsung has been battling Apple for the past several years over technology used in its smartphones and tablets, The two companies in August agreed to settle u unique iphone case all disputes outside the US, but their lawsuits continue in the country, Microsoft also has sued Samsung, saying it didn't live up to its patent licensing agreement for technology used in Android tablets and smartphones, Companies have tended to file lawsuits with the ITC to speed up the process, Civil suits could take years to go to trial, and they're often held up for even longer in the appeals process, And even when they end, the money involved often isn't enough to deal a real blow to the company found at fault, An ITC sales ban, however, could severely hurt a company's profits, Nvidia last month estimated that an an ITC trial wouldn't happen until mid-2015 and a US district trial wouldn't come for another two to three years..



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