Smartphone slowdown results in weaker second quarter for Samsung

Samsung acknowledges that it faces some challenges ahead as it advises investors that the second half of fiscal 2014 may be a difficult period. The world's largest smartphone-maker says that slow downs in the smartphone market affected its earnings in the second fiscal quarter of 2014 and to combat that, the company promises more competitive products in light of stiffer competition.

Profits at Samsung Electronics fell by about 20 percent compared to the same quarter a year ago. This year, the company reported net profits of just $6.09 billion (6.25 trillion won), down from $7.57 billion (7.77 trillion) last year.

The company noted that several factors affected its sluggish performance, including slow sales of phones and tablets and higher marketing costs. Additionally, a stronger Korean currency is also hurting Samsung's earnings report.

In addition to making some of the world's most popular smartphones and tablets, Samsung also makes memory, processors, LCD panels, OLED panels, TVs, consumer electronics and other appliances, and cameras.

What do you think Samsung should be doing to reverse course and end the year right?

Source: Samsung