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Samsung faces smartphone challenge

8 July 2014 Last updated at 02:26 BST

Samsung Electronics is predicting a 25% drop in profit for the April-to-June period, hit partly by the slowdown in the smartphone market and partly by the strength of the Korean currency.

It expects to make an operating profit of 7.2 trillion won ($7.1bn; £4.2bn) for the quarter, down from 9.5 trillion won a year ago.

The mobile phone unit accounts for a large part of Samsung's profit and there are concerns the company may have become too dependent on the division.

The BBC's Puneet Pal Singh reports on the challenges facing the company.

Watch more reports on Asia Business Report's website.

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