Tech giant Samsung Electronics Co Ltd on Thursday warned of possible weaker earnings this year due to softer sales of gadgets such as smartphones, a trend that is also hurting rival Apple Inc and major chipmakers.
The South Korean firm's warning came a day after Apple shares fell more than 6.5 percent, the biggest percentage drop in two years, as the iPhone maker forecast its first quarterly sales drop in 13 years.
Slowing economic growth in China and weaker emerging market currencies are undercutting sales of electronics ranging from televisions to personal computers, spelling trouble for not only for Samsung and Apple but for their suppliers and the broader industry.
"Broadly weaker IT demand will make it difficult to maintain 2016 profits at the level of the previous year's," Samsung said in a statement accompanying its fourth-quarter results.