NEW YORK (TheStreet) -- Even though Samsung said a strong Korean currency was one of the main reasons the company's second quarter earnings were disappointing, the company is being attacked by Apple (AAPL) at the high-end of the smartphone market and low-end Google (GOOG) Android devices.
Samsung announced second-quarter revenue was 52 trillion won ($51.5 billion USD), down more than 3% sequentially, and more than 10% from a year ago. Second quarter operating profits were estimated at 7.2 trillion won ($7.12 billion USD) - off more than 15% sequentially, and nearly 25% from a year ago.
The Korean electronics giant blamed a number of reasons for the poor showing, including the fact the second quarter is a "seasonally weak period" for sales in some regions and that the company is facing increased competition in the world's largest marketplace - China.
Samsung noted that it sold fewer 3G phones in China because consumers seem to be waiting for faster 4G devices. Although still the Chinese sales leader, Samsung finds itself being squeezed at both the higher and lower ends of the marketplace there. The company is facing increased competition from local Chinese brands such as privately-held Xiaomi, which started selling smartphones only three years ago.
In the first half of 2014, Xiaomi shipped almost four times the number of phones it did in the same period last year - so many phones that the company is poised to overtake Lenovo (which uses Google's Android operating system) as the second most popular phone brand in China. Xiaomi revenues rose 149%, year-over-year, reaching 33 billion yuan ($5.3 billion USD).