Samsung's first decline in quarterly profit in 2 years

Samsung Electronics has reported its first decline of quarterly profits in two years.

According to USA Today, the net profit of 7.3 trillion won was 11 percent below the third quarter of 2013. The company said that sales of 59.3 trillion won just surpassed the company's record high from the third quarter (59.1 trillion), but increased marketing costs and one-time expenses, including bonuses, cut into the profit.

Reuters notes that the company addressed the issue in a statement.

“It will be challenging for Samsung to improve its earnings in the first quarter as the weak seasonality of the IT industry will put pressure on demand for components and TV products,” the company said.

The world's biggest smartphone maker is set to come out with its new Galaxy 5 in the next few months, in hopes that sales for the S5 will be better than sales were for S4. However, competitor Apple also plans to release a new iPhone soon with the long-awaited larger screen.

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