"Weak demand" for its devices has forced Samsung to increase marketing expenditure, the company has admitted.
Older and low-end models have been occupying warehouse space and, despite always having enormous promotional outlay, the dip in demand is causing a dip in profits, accelerating the company's gradual profit decline.
Samsung now anticipates earnings of around 24 per cent less this quarter than figures recorded a year ago, with an 8-11 per cent drop in underlying sales.
European competitors are eating into Samsung's share of the low- and mid-range market, the company claims, while Chinese consumers are ignoring its 3G products, choosing to wait for a 4G phone. 5in and 6in phablets have also chomped into the Korean firm's 7in and 8in tablet sales.
Alongside traditional market factors though, Samsung has also highlighted currency fluctuations as a financial woe. The won has been gradually creeping up in value against the dollar, affecting all Korean exporters.
Samsung will hope to pick things up with the release of the Galaxy Note 4 later in the year.