Samsung Electronics on Tuesday said profit fell for a second straight quarter as sales in its smartphone division continued to dip.
The tech giant posted a 3.3 percent fall in first quarter operating profit to 8.5 trillion won ($8.2 billion) from the year ago period, just above its guidance of 8.4 trillion won. Profit in its key mobile division reached 6.43 trillion won, down an annual 1.2 percent.
But Samsung is tipping better performance in the current quarter, betting that its flagship Galaxy S5 mobile, launched last month, will outsell its predecessor.
Still, analysts say the South Korean firm's mobile business faces a challenging year ahead.
"[The fall in handset sales] is the worry as it's a cash cow. While we saw some encouraging signs how the Galaxy S5 may be doing in the upcoming quarters there's obviously an increase in pressures from the price perspective as well as the marketing costs," said Bryan Ma, vice president of IDC Singapore.