Mobile device kingpin Samsung missed analysts’ earnings estimates for its Q2 2014 and posted its third consecutive quarter of declining profit as its sales fell to $51.4 billion and its operating profit slipped to $7.1 billion.

Samsung blamed a slowdown in smartphones sales amid stronger competition in the Chinese and European markets, lurching demand for tablets and the strength of Korean currency for its laggard quarter. Less than two weeks ago the Korean manufacturer signaled it expected to turn in a down quarter when its chief financial officer Lee Sang Hoon warned that Samsung’s results for the period may be “not that good.”

Analysts expected Samsung to record flat operating profit of about $8.2 billion for the period ending June 30. Samsung didn’t supply any details on Q2 net income or division earnings. Its audited results are expected later this month.

Despite the down quarter, Samsung expressed an optimistic tone for the next period, pointing out that the “second quarter is a seasonally weak period for smartphone demand in China.” The vendor said it expects its new smartphone lineup slated for the fall will prompt a revenue performance spike and it isn’t anticipating it will need a “major marketing expenditure” to prod sales and reduce inventory in the upcoming period. In addition, Samsung said stronger smartphone sales will extend to better display panel sales.

The chatter is that Samsung’s next big product release—for the Galaxy Note 4 5.7-inch phablet—could occur around IFA 2014, which runs Sept. 5-10. If Samsung holds to that release schedule, it will beat Apple’s (AAPL) iPhone 6 to market, which some accounts have said will debut later the same month.

The questions, of course, are, Will Samsung will be able to maintain the momentum it gains from beating Apple to market with a new product in the fall? And, how quickly will the iPhone 6 recover lost ground for Apple? In addition, it remains to be seen if the short-term erosion of Samsung’s sales from Chinese smartphone makers Xiaomi and Lenovo will continue to dog the vendor at the low end of the market.