Samsung Electronics, the world's biggest maker of mobile phones and TVs, has reported a drop in quarterly profit for the first time in two years.
Net profit was 7.3tn won ($6.8bn; £4bn) in the October-to-December period, down 11% from the previous three months.
Samsung's earnings were hurt by a drop in margins in its mobile phone division, which saw operating income fall 18% quarter-on-quarter.
Growing competition
The success of its smartphone division has been one of the biggest drivers of Samsung's growth in recent years.
"Looking at the quarterly earnings trend, we expect 2014 to follow last year's pattern of a weak first half and a strong second half as usual
Robert Yi
Samsung Electronics
It helped the company displace Nokia as the world's biggest phone maker in 2012.
However, the South Korean firm is facing increased competition in the sector as other manufacturers have launched new models.
One of Samsung's biggest rivals, Apple, launched two new models of its iPhone - the top-end 5S and a cheaper 5C - in September last year.
Nokia - whose phone division has been bought by Microsoft - also unveiled two new phone models in September, while Taiwanese firm HTC launched its latest handset, the Android-powered One Max, in October.
Analysts said the launch of the models had affected Samsung's performance during the October-to-December quarter.
Despite a decline in profits in the last quarter - Samsung posted record annual earnings.
The firm made a net profit of 30.5 trillion won ($28bn; £17bn) in 2013 - a 28% jump from a year ago.
It said its performance during the year was boosted by the success of its smartphones and tablet, as well as robust demand for TVs.
The firm said it maintained its market leadership in mobile devices, with a 30% share of the smartphone market in both developed and emerging markets.
