Samsung profit falls for first time since 2011

Increased competition in smartphones and tablets could slow Samsung's growth in 2014

Samsung, the world's biggest seller of smartphones, said that its fourth quarter profit declined from the previous quarter for the first time in more than two years.

The net profit of 7.3 trillion won ($6.8 billion) was 11% below that of the third quarter of 2013. While the results fell short of market expectations, Samsung's profit still surpassed that of the fourth quarter of 2012 by 4%.

Sales of 59.3 trillion won slightly surpassed the company's record high from the third quarter (59.1 trillion), but increased marketing costs and one-time expenses including employee bonuses cut into profit. A stronger won also cut into profit, the company said.

Samsung is expecting increased competition, specifically from Apple, for sales of its Galaxy smartphones and in tablets. Apple has begun selling iPhones in China and is expected to introduce new iPhones with bigger screens.

The company's important IT and mobile communications division saw its profit fall from 6.7 trillion won in the third quarter of 2013 to 5.5 trillion won.

Samsung's decline in profit had been reported by the company earlier in the month. Along with its audited results, released today, Samsung also forecast decreased demand for smartphones and tablets in the current quarter, in part because of sales seasonality.

"2014 could be a tough year for Samsung Mobile," said Ben Bajarin, principal industry at Creative Strategies, Inc. "Particularly in the low end in emerging markets."

The company is also the largest maker of semiconductor chips and TVs. Demand for chips and TVs is expected to increase -- Ultra HD TVs especially because of the upcoming World Cup soccer tournament.