HANOVER, GERMANY - MARCH 05: A visitor tries out a Galaxy Tab tablet at the Samsung stand at the 2013 CeBIT technology trade fair on March 5, 2013 in Hanover, Germany. CeBIT will be open March 5-9. (Photo by Sean Gallup/Getty Images)
Samsung's latest earnings show that the South Korean technology manufacturer's profit declined 24 percent from last year, and the company blames the slowing smartphone
market and competition from China.
Samsung made a statement that its lackluster forecast was based on the slowing of the smartphone market and from competition in both China and Europe, according to the New York Times. Tablet sales were also "sluggish" and sales were made slower by larger-screened smartphones. The final nail in the coffin is the appreciation of the South Korean won against other global currencies.
Samsung also said that its promotions cannibalized profits, such as when Verizon Wireless offered a free phone if consumers bought a Galaxy S5. Other issues include a slowing smartphone market because fewer people want to upgrade.
Samsung does offer a number of phones at different prices, but its higher-end devices such as the Galaxy S5 competes directly with the iPhone -- which has now partnered with China Mobile. The lower-end phones are also being challenged by emerging phone manufacturers, and many are from China, such as Xiaomi and Lenovo. In the end, Samsung's losses seem to be tied to China.