Samsung's earnings from its smartphones and mobile devices slid by a massive 62% in the last quarter of 2014, completing a miserable year for the Korean tech giant.
Although Samsung did not announce how many smartphones it sold between October and December, it did confirm that sales were down. Tablet sales also declined.
Samsung said it’s now looking to India and China to plug the gap and is planning a “diversified portfolio” to try and stymie competition from Xiaomi at the low end and Apple at the top end of the market.
The company will now focus more on its component business. However, that’s likely to aid competitors, especially Apple, which is said to be turning to Samsung to produce the silicon for the iPhone 6S, due out at the end of the year.
Samsung’s disastrous results come just after Apple posted a record profit of over £12 billion, driven by iPhone sales of 74.5 million.
It means that Samsung’s position as the world’s number-one smartphone-maker is now seriously under threat.
Samsung will likely to try and counter the threat with its forthcoming Galaxy S6 handset, expected to launch at Mobile World Congress in March.