Samsung Electronics reported its first decline in quarterly profits in nearly two years, as smartphone sales have plummeted thanks products released by competitors like Apple.
The biggest smartphone maker in the world kept its 2013 investment plan "conservative" and told investors it would be hard to increase earnings in the first quarter as demand declines after the year-end holiday timeframe, according to Reuters.
From October through December, profit decline 6 percent on year to 8.3 trillion won, or $7.7 billion, which was right in line with the previous estimate of 8.3 trillion won, Samsung said in a statement.
The figure was lowered by an 800 won ($745 million) special employee bonus to celebrate 20 years since Chairman Lee Kun-hee revealed a management strategy that Samsung views as the reason for its recent growth.
Stock fell 8 percent during the past month over slow smartphone growth, according to the Galaxy S4 maker.
"It will be challenging for Samsung to improve its earnings in the first quarter as the weak seasonality of the IT industry will put pressure on demand for components and TV products," the company said in a statement.
Operating profit from its mobile division "stood fat" at approximately 5.47 trillion won, but fell 18 percent from July through September's record 6.7 trillion won as two new iPhones took away sales during the holiday period.
Profit from Samsung Display declined 90 percent to around 110 billion won, according to Reuters.
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