Samsung warns of smartphone sales dip due to ‘intensifying competition’
London: South Korean tech giant Samsung has warned there were signs that future growth of its mobile sales could be held back by intensifying competition.
The warning follows soon after Apple’s iPhone sales disappointed investors.
Samsung said in its earnings statement that the furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products.
It said that the strongest growth in the future would come in the market for low cost handsets in developing countries, the Telegraph reports.
The firm said that in the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year.
According to the paper, Samsung’s net income rose to 4.2 billion pounds from 2.3 billion pounds in the same three month period a year earlier, beating expectations.
Profits in its mobile phone division, the biggest in the world, more than doubled on the year to 3.2 billion pounds, the report added.