Samsung said its revenue from smartphones, tablets and mobile fell 64 percent annually in the October-December period to 1.96 trillion won.
It was the division’s fifth consecutive quarter of decline, a stark contrast to Apple’s record-breaking 74.5 million iPhone sales in the three months to December 27 on the back of the success of its big-screen iPhone 6 and 6 Plus.
Mobile’s share of Samsung’s operating profit fell from almost 70 percent in 2013 to about 58 percent in 2014, Reuters reported.
Samsung said its smartphone and tablet shipments declined in the fourth quarter, though it posted higher average prices thanks to sales of the Galaxy Note 4 phablet. Samsung did not release figures on smartphone sales.
On the other hand, Apple’s market share in Samsung’s home turf of South Korea reached a record 33 percent in November, according to Counterpoint, and the U.S. firm’s gains in China, the world’s biggest smartphone market, suggest it is rapidly gaining ground on the market leader.
Samsung tipped demand for smartphones and tablets to fall sequentially in the first quarter due to seasonal factors, despite the launch of new products like mid-tier Galaxy A devices.
Samsung Electronics on Thursday reported its first annual earnings decline in three years, as strong chip earnings failed to make up for weakness in the South Korean giant’s smartphone business.
Samsung posted fourth-quarter operating profit of 5.3 trillion won or $4.88 billion, in line with the 5.2 trillion won profit the firm guided for earlier this month.
The result put the firm’s 2014 profit at 25 trillion won, down from a record 36.8 trillion won in 2013 and the lowest since 2011, as the world’s top smartphone maker battles cheap Chinese rivals and a resurgent Apple.
“Uncertainties for global business conditions will likely grow further in 2015 due to the slowing Eurozone economy and financial risks in emerging countries,” Samsung said in a statement.