Samsung Electronics saw sales and operating profit at its key mobile unit fall in the second quarter as the company faces intensifying competition from low-cost Chinese rivals and growing worries from investors of its ability to maintain its position as the No.1 handset and smartphone maker.
Continuing a trend that analysts have been tracking for several quarters, several Chinese smartphone vendors grew market share in the second quarter at the expense of Samsung Electronics and Apple, which continue to lead the market, according to a report from research firm IDC.
IDC predicted quarterly smartphone shipments will break the 300 million unit mark for the first time in the third quarter of 2014, following strong growth in the April to June period.
The wait for the first commercial Tizen-based smartphone will go on. Samsung Electronics said it would delay sales in Russia of the Samsung Z, the first Tizen smartphone, presumably because there are not yet enough apps on the platform.
The worldwide tablet grew 11 per cent year over year in the second quarter of 2014 with shipments reaching 49.3 million units, according to preliminary data from IDC.
The different groups working on standards to connect devices to each other as part of the Internet of Things will eventually need to work together or the industry will need to decide on a select few, according to an AT&T Mobility senior executive.
Samsung Electronics is considering buying home automation platform SmartThings (a 2014 Fierce 15 winner) for around $200 million, according to a TechCrunch report, in what would be yet another move by Samsung to get its hooks into the Internet of Things market.
Samsung looks set to lose ground to its rivals in the second quarter of 2014, as sales figures for May show the company's lead was eroded by rivals Apple, Lenovo, and Motorola.
Despite spearheading disparate Internet of Things alliances, executives from Qualcomm and Intel say that the IoT ecosystem would benefit from having one standard and one platform.
Samsung Electronics' efforts to get the first smartphone running the open-source Tizen platform into the market suffered another setback when the company had to backtrack on its promise to show off a commercial version of its first Tizen phone at a developer conference in Moscow on Thursday.