Samsung’s electronics business has seen weak earnings in the second quarter of 2014, dropping by around 25% from last year.
The firm estimates it will make a profit of approximately £4.2bn in the second quarter of 2014, indicating another fall in profit year-on-year after underperforming in both the first quarter of 2014 and the fourth quarter of last year.
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The firm believes the drop is partially due to the slowing smartphone and tablet markets, as well as increased competition from other firms in the space such as Huawei.
It also said the demand for larger 5in and 6in smartphones replaced demand for smaller 6in and 7in tablets.
Earlier this week, Gartner said the tablet market is set to slow down in 2014 as the mature market enters a new phase of adoption.
Samsung also said current exchange rates may have had an effect on its earnings due strong Korean currency, due to its high export rate.
More on smartphones
As the third quarter approaches, Samsung expects better results due to the release of its new smartphone line-up.