Samsung smartphone division posts a second profit warning

 
Oliver Smith
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SAMSUNG Electronics, the subsidiary of Samsung behind its Galaxy smartphones, has warned of a four per cent drop in operating profit for the quarter to March, marking the second quarterly decline in a row.

The South Korean firm said that sales for the quarter are expected to be 53 trillion won (£30.2bn), flat on last year, while operating profit is expected to fall to around 8.4 trillion won.

During its fourth quarter 2013 Samsung saw profits fall six per cent to 8.3 trillion won, due to declining smartphone shipments and a 1bn won special employee bonus.

Samsung, which launched its flagship Galaxy S5 smartphone this week, is facing increased competition from the likes of Lenovo, which recently acquired Motorola, and Chinese manufacturers such as ZTE.

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