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January 07, 2014 AT 8:06 AM
No wonder Samsung Electronics is so busy looking for a new hit gadget. Its signature product, the smartphone, is facing unanticipated challenges. Samsung, the world’s largest maker of smartphones, said Tuesday that its operating profit in the fourth quarter had declined from the third quarter of 2013, and also compared with the fourth quarter of 2012. As usual, the company, based in Suwon, South Korea, released only a bare-bones forecast in advance of a full quarterly earnings report later in the month. It provided no reasons for the expected decline. But analysts said softness in smartphones, which account for more than half of Samsung’s earnings, was probably a big reason.