Image: Samsung Electronics Image: Samsung Electronics

Samsung has a reported a 40% fall in profits for the fourth quarter as a result of slowing smartphone sales.

The Korean tech giant's profit was 3.2 trillion won ($2.7bn, £1.9bn) in the three months to December, and said profits in 2016 would not be at the same level they were last year. Revenues for the full year fell 5.6tn won to 200.6tn won ($165.5bn, £116bn).

Samsung blamed a "difficult business environment and slowing IT demand" for falling profits. The company has faced growing competition from the likes Huawei and Xiaomi at the cheaper end of the market, while Apple continues to pose stiff competition at the premium end.

It isn't a problem just facing Samsung. Earlier this week, Apple said its iPhone sales are this year likely to fall for the first time since the first edition was launched in 2007. However, while Samsung is seeing quarterly profits fall by 40%, Apple was still able to post world record profits and revenues.