Samsung said that its focus for 2015 is on improving profitability in its struggling handset unit, as it cited some early signs of recovery at the end of 2014.

The company said that compared with the previous sequential quarter, profit in its IT & Mobile Communications unit improved, despite a “slight” decline in smartphone shipments. This came through an improved product mix (with sales of the premium Galaxy Note 4 kicking in), and “efficient cost management,” particularly with regard to marketing spend.

But year-on-year, operating profit was down in Q4: KRW1.96 trillion (US$1.79 billion), compared with KRW5.47 trillion, on revenue of KRW26.29 trillion, down from KRW33.89 trillion.

Samsung shipped 95 million handsets in the fourth quarter, with the proportion of smartphones in the mix being in the “high 70s percent” range. Following Apple’s bumper quarter for iPhone sales, the companies are now neck-and-neck in this profitable market segment, although of course Apple’s sales centre on higher-value smartphones.

Samsung’s device ASP was around $200, as sales of higher-cost devices kicked-in to balance volumes of lower-cost terminals.

For the full year, IT & Mobile operating profit was KRW14.56 trillion, down from KRW24.96 trillion, on revenue of KRW206.21 trillion, down from KRW228.69 trillion.

Tablet shipments increased quarter-on-quarter, with sales growth for its Tab4 product line. In total, 11 million tablet devices were moved by the company.

And revenue for its networks unit also increased, due to international LTE expansion projects by operators.

Looking forward, the company’s smartphone business is focused on “successful implementation of the new line-up strategy”, which includes a streamlined product portfolio, and products differentiated with new materials and designs.

While the company is expected to unveil its new flagship, Galaxy S6, in the near future, it also has high-hopes for the recently-announced A3 and A5 devices, which are now set for a global rollout.

It also mentioned opportunities in the business-to-business market, aided by its Knox device management technology.

On a group level, the company announced a Q4 net profit of KRW5.35 trillion, down from KRW7.30 trillion, on sales of KRW52.73 trillion, down from KRW59.28 trillion.

Samsung noted strength in its Device Solutions business, with “solid” demand for memory products and an increase in 20nm mobile application processor supply. Tight supply and demand conditions also benefited its LCD screen business, with OLED displays also seeing increased shipments.

In its TV unit, the company is aiming at the high-end (ultraHD), “particularly the curved and ultra-large 60-plus-inch panels”.

For the full year, profit was KRW23.39 trillion, down from KRW30.47 trillion, on revenue of KRW206.2 trillion, down from KRW228.7 trillion.