Samsung faces uncertain earnings prospects in the second half of this year after smartphone sales declined in the second quarter.
Executives at the electronics giant told investors during a conference call Thursday that intensified competition in the smartphone market makes it unlikely that earnings will improve.
Its strategy is to introduce new premium smartphones in the third quarter while bolstering its lineup of low and mid-priced products, which should lead to increased sales volume.
But the company said it is growing increasingly difficult to boost profitability due to rising marketing and other expenses needed to stay ahead of rivals.
Samsung said its finalized earnings in the second quarter consisted of W52.4 trillion (US$1=W1,031)in sales and W7.2 trillion in operating profit. Operating profit fell 24.6 percent from the same period of 2013, while sales dropped 8.9 percent.
Samsung said the strong won contributed to a W500 billion decline in quarterly operating profit, while marketing costs rose.