Samsung expects a 60 percent drop in operating profits for the third quarter due to a lowered margin rate of its smartphones. The company said in its preliminary guidance that revenue for the quarter was expected to be 47 trillion won ($44 billion), a 20.45 percent decrease from a year ago and a 10.22 percent drop from the previous quarter. The Korean smartphone manufacturing giant expects operating profits of 4.1 trillion won ($3.8 billion), a 60 percent decrease from a year ago and a 43 percent decrease from the previous quarter. Samsung said that weakened profitability of its mobile business and weakened demand of its System LSI business and panel business were the main causes of the fall. It said it sold more mobile devices compared to the previous quarter, but the average sales price (ASP) dropped due to lowered price of older and high-end models. The company's TV business ASP also fell as the high-demand season ended much earlier than expected, Samsung said.