Samsung estimated Q4 2013 operating profit of around KRW8.3 trillion ($7.8 billion) on sales of KRW59 trillion, which fell short of analyst forecasts.

In a Reuters poll of 23 analysts, a KRW8.8 trillion operating profit was forecast. And that was one of the more conservative estimates.

According to a consensus forecast compiled by Eikon, a bullish KRW9.7 trillion operating profit was expected on sales of KRW61.7 trillion.

Comparisons with previous quarters underline how disappointing Q4 was for the South Korean manufacturer.

Operating profit during Q3 2013 was 22 per cent higher, at KRW10.16 trillion, on sales a shade over KRW59 trillion.

Operating profits were also higher in Q4 2012, at KRW8.84 trillion, though sales were lower (KRW56 trillion).

Samsung doesn’t give any explanation for the profit squeeze in its Q4 earnings guidance, although analysts point to employee bonuses as a big factor.

To commemorate the 20-year anniversary of chairman Lee Kun-hee’s ‘New Management’ strategy, analysts reckon bonuses cost the firm between KRW300 billion and KRW700 billion.

“Samsung’s special incentive payments to employees, including domestic and overseas units, appear to have been much larger than the market expected; marketing costs of its mobile business might have also been larger,” said Shinhan Investment analyst Kim Young-chan, quoted by Reuters.

The firm’s Q4 earnings, say analysts, were also likely to be affected by stiffer smartphone competition from Apple in the US and Japan.

And following its recent iPhone distribution deal with China Mobile, the Cupertino giant looks set to turn up the heat on Samsung in China as well.

Larger screen-sizes from Apple, mooted for later this year, would also pose a new threat to Samsung’s Galaxy Note series.

Indeed, analysts – according to Reuters – think 2014 will be the toughest year for Samsung’s mobile devices division since it started manufacturing smartphones in 2007.

The mobile division accounts for about two thirds of Samsung’s overall operating profit.

Perhaps sensing more difficult times ahead, and responding to investor concern over share price falls (not helped by a strong Korean won), Lee Kun hee recently urged Samsung to adopt new ways of thinking and reduce its hardware focus.

At the CES show in Las Vegas, Samsung launched its new NotePro and TabPro portfolio of products.

Both sets of products support the Android 4.4 operating system and will be available globally within this first quarter.

Samsung will report its Q4 2013 figures on 24 January.