Samsung is reportedly expecting to see a profit drop for the last three months of 2014 to $4.7bn, a 37% decline compared to the corresponding year ago quarter.
During the quarter, the South Korean electronics major is also expecting to see a 12% year-over-year drop in sales to $47bn.
Samsung’s mobile business struggled against cheaper electronics manufacturers, mainly in China, during the fourth quarter of 2014.
The company also saw pressure at the high end from Apple’s iPhones and from the mid-range Xiaomi Redmi 2 smartphones.
However, sales of top smartphones such as the Galaxy Note 4 boosted Samsung’s profits, scoring a modest rise from the earlier quarter.
In the midst of declining sales, Samsung also reportedly revealed plans to trim down the number of smartphone models this year by 25-30%, instead targeting a core smartphone range.
Samsung is currently preparing for the anticipated launch of its next global flagship device, the Galaxy S6, in March.
