Samsung had to face a tough competition with Lenovo and Xiaomi.

Samsung Electronics predicts profit drop by 60% in the third quarter of this year due to weak sales of mobile phone edition of the Galaxy.

The South Korean company said operating income for the three months from July to September 2014 is estimated at 4,1 trillion won (US $ 3,8 billion).

The number is still far below the income in the same period last year.

"Delivery of smart phones rose marginally amid fierce competition. However, operating margins decreased as the increased marketing spending and a decrease in the average selling price," said a Samsung official statement.

Sales of Galaxy smart phone is one of the growth drivers of Samsung in recent years.

But the company is facing competition due to a number of other companies are also trying to take advantage of smart phone sector growth.

Competitors such as Apple, HTC and Chinese manufacturing such as Lenovo, ZTE and Huawei are trying to increase their market share.

Factors that cause decreased Samsung profit in the first quarter of this year.