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Samsung's second quarter earnings forecast sees a 24 percent decline in profit from the same period last year, which is mainly attributed to a waning interest in the smartphone market.

Samsung expects to bring in a profit of 7.2 trillion won ($7.1bn) on sales of 52.0 trillion Korean won, which falls short of analyst expectations of an 8.1 trillion won ($8 billion) profit. The South Korean vendor cited increased competition in entry-level and mid-range segments in China and Europe as a reason for the decline in sales.

Samsung also stated that the proliferation of 4G LTE services in countries like China saw a decline in 3G products as consumers were holding out for LTE-enabled handsets. Similarly, the rise of the 5- and 6-inch phablets have cannibalized sales of 7- and 8-inch tablets.

Also, the saturation of the smartphone market meant that Samsung had to spend more toward marketing and advertising than it usually does. The declining interest has also adversely affected Samsung's manufacturing units like Samsung Display and System LSI.

Furthermore, the steady increase of the Korean won, which increased by 11 percent against the US dollar, has dampened Samsung's profit margins. The manufacturer has said that it "cautiously expects a more positive outlook in the third quarter," which will likely see the launch of a new Galaxy Note smartphone along with other devices.

In addition to smartphones, Samsung is focusing its attention on wearable devices and the connected home segment to drive future growth.

Source: Samsung