Samsung Electronics the South Korea based tech giant warned Thursday that earnings could be weaker in 2016 due to soft sales of its electronic gadgets like smartphones. This trend has also hurt its biggest rival Apple and the major chipmakers.

The company’s warning came just a day after shares of Apple dropped over 6.5%, its largest percentage drop for two years, as the maker of iPhones forecast its first sales drop for a quarter in the past 13 years.

Slowing growth in the China economy and weaker currencies in emerging markets have undercut sales of electronics that ranged from personal computers to television, which has spelled trouble not just for Apple and Samsung but for its suppliers and the industry as a whole.

The No. 1 maker in the world of smartphones, as well as memory chips announced that its operating profit for the October through December quarter was 6.1 trillion won equal to $5.05 billion, matching its guidance of earlier.

Revenue increased by 1.1% to just over 53.3 trillion won, which was slightly higher than its guidance of 53 trillion.

The Galaxy tablets and smartphones maker reported a 2015 full year profit of 26.4 trillion won, which compared to 25 trillion for the 2014 full year.

Samsung stock was down on the day in Korea by 2.6% underperforming the broader market rise of 0.5%.

Some investors as well as analysts believe that Samsung will profit will fall in 2016 for the second time in the past three years as demand will soften for its gadgets and undercut the prices of its memory chips and its displays that helped it offset the dropping profits for mobile handset last year.

The division of semiconductors was its top earner for a sixth consecutive quarter in the period of October through December, which lifted its operating profit to over 2.8 trillion won a year ago of 2.7 trillion won.

Profit in the mobile division slipped by 7.3% from the 2015 third quarter to just over 2.23 trillion won, the weakest result in the past four quarters.

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