Samsung claims the main underlying causes are stiffer competition in Europe, especially in the low- and mid-range parts of the market (presumably from the likes of Motorola), as well as a tougher climate in China, where many buyers are choosing to hold out for 4G phones rather than picking up current 3G models. The manufacturer also says that its 7- and 8-inch tablet sales, which have already been suffering from a slow upgrade cycle, are further being cannibalized by sales of 5- and 6-inch phablets.

On the other hand, Samsung claims that one of the biggest sources of its financial pain has nothing to do with smartphones or market saturation, but instead results from currency fluctuations: the won has been steadily increasing in value against the dollar, which isn't good news for any Korean exporter. The company "cautiously" expects a "more positive outlook" later in the year, thanks to the release of a new smartphone lineup (likely a reference to the Galaxy Note 4 and other devices coming during the fall), while also hoping that its marketing spend will fall back to normal levels.