Samsung Electronics shares fell over 4 percent after the South Korean electronics giant warned of a tough environment in 2016 amid weak global economic growth and increased competition in its key business units.
Co-chief executive Kwon Oh-Hyun told employees in the company's annual New Year's address that issues such as emerging market financial risks could weigh on global growth. He also said that some of Samsung's core products – including smartphones, televisions and memory chips – will face intensifying competition.
Kwon said that in order to make sure their customers stick with their products, the company needs to change from a focus on hardware to software.
"The territories of industries are collapsing," Kwon said. "We have to compete in a new way that we've never experienced in the past."
"The competition landscape is changing to software and platforms, so we need to build a new system and competence," the CEO added.