Samsung Electronics Co, Ltd, South Korea's leading electronics company, has released a less than optimistic preview of its financial earnings for the second quarter of 2014.

The forecast estimates an operating profit of about  US$7.1 billion, which is 24.5 percent lower than the year-on-year total. It is the lowest forecast for the past two years.

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Samsung explained the significant sales drop by saying its sales usually weakens in the second quarter in China. This market quirk definitely affects their sales since China is the largest market in the world for smartphones.

Samsung's 3G products are facing weak demand as Chinese shoppers save up for the release of smartphones with 4G technology.

Sales of tablets are also low since consumers tend to upgrade tablets more slowly than they do smartphones. The market for smartphones with big screens is larger than the demand for smaller tablets.

Samsung also said the strong Korean won helped maked their smartphones more expensive.

The need to improve sales over the quarter has pushed Samsung to increase its budget for marketing promotions. The company sees the necessity of this move since Apple is continuously challenging Samsung's market share through its new partnership with China Mobile.

On the other hand, Samsung also faces stiff competition from emerging phone makers like Huawei, Lenovo, Xiaomi and ZTE.

Despite all this, the company is looking forward to an improvement on their sales in the third quarter of this year.

Samsung said it will continue to expand its B2B businesses and looks forward to exceeding consumers’ expectations by offering the most innovative wearable devices, smart home appliances and Internet of Things (IoT) devices.

Tagssamsung dropped sales, Tablet, sales