Samsung Electronics prepared investors for a third straight quarter of disappointing earnings, warning on Tuesday that operating profits could fall by as much as 27%.
The company took the unusual step of issuing a one-page explainer in advance of its second quarter earnings report. It blamed disappointing sales on a wider slump in demand across Europe and Asia, combined with an unfavorable exchange rate that made its products more expensive relative to cheaper phones flooding the market.
Samsung also said demand for tablets took a hit as sales of large smartphones, some with screens just an inch shy of tablets, cannibalized sales of its smaller, 7-to-8 inch tablets.
Samsung’s stock declined by 11% in the past month, though there are signs that investor pessimism may have bottomed out. The Wall Street Journal reports that the stock bounced back by a modest 2.1% in early trading Tuesday.
“The company cautiously expects a more positive outlook in the third quarter with the coming release of its new smartphone lineup,” Samsung concluded in its explainer.
More Must-Reads from TIME
- Why Trump’s Message Worked on Latino Men
- What Trump’s Win Could Mean for Housing
- The 100 Must-Read Books of 2024
- Sleep Doctors Share the 1 Tip That’s Changed Their Lives
- Column: Let’s Bring Back Romance
- What It’s Like to Have Long COVID As a Kid
- FX’s Say Nothing Is the Must-Watch Political Thriller of 2024
- Merle Bombardieri Is Helping People Make the Baby Decision
Contact us at letters@time.com