Not surprising that Q3 is coming in poor. It's always darkest before dawn and with Q4 being the quarter new devices launch, buyers are always in waiting mode. Also, the costs to market said new products has been incurred. Again, typical that the operating margins will decline due in part to increased marketing costs. They are also selling existing products for lower prices to help clear them out.
Looking at the numbers, they sold more phones than last quarter but they sold them for less which again, combined with higher marketing costs is going to hit the bottom line.
IMO Samsung is feeling the heat from Sony, LG and others in the android space. The S5 is a nice phone, but IMO Sony is the one I would go with if I were to choose between the two. The only reason I'm in the Note line is for size and the S-Pen.
IMO they need to ditch the strong focus on Touch Wiz and save some moeny. They also need to trim down the number of models offered.