Samsung today reported its third quarter earnings for 2014 and things are not looking rosy for the company with its profit declining by nearly 60% from the same time last year.

The company’s revenue fell by 20% to $45 billion dollars, which allowed it to garner a profit of $3.9 billion. While the company reported an overall growth in its shipments thanks to the demand for its low to mid-end smartphones, its profit fell because of a decline in the ASP (Average Selling Price). Samsung states the reason behind the decline in ASP is because of a fall in price for its older models and the decreased shipments for its high-end products.

The impact of the launch of the Galaxy Note 4 was “marginal” at best as it was launched towards the end of Q3. The company, however, did note that the shipments of its tablets increased “led by expansion of new Tab S.”

For the last quarter of 2014, Samsung states that demand for smartphones and tablets will increase because of the “year-end seasonability.” However, the price competition among smartphone OEMs is also set to intensify during this period.