As competition at the top end of the smartphone sector heats up, analysts warn Samsung Electronics could be starting to lose its earnings momentum.
Samsung, the world's top smartphone maker by shipments, reported yet another record quarter on Friday. However, it forecasted weaker mobile handset shipments of 1-5 per cent in the fourth quarter.
"Although we expect demand to increase next quarter due to peak seasonality, lingering macro-economic issues and intensifying market competition will remain in the fourth quarter," Samsung said in a statement on Friday.
(Read more: Samsung keeps it simple to overtake Apple)
Analysts say the tepid reception of the Galaxy Gear smart watch and Galaxy Round curved smartphone shows Samsung is failing to capture the attention of consumers with its latest product offerings.
"I see the Galaxy Round as more of an experiment," says IDC Analyst Melissa Chau, noting that Samsung must be careful not to "innovate, simply for the sake of innovation".
Similarly, Forrester analyst Sarah Rottman Epps criticized Samsung's "spaghetti-on-the-wall" strategy following the launch of the Galaxy Gear.
While there has been no shortage of warnings about weakening demand at the high end of the smartphone market, demand for tablet devices is expected to take off.