Samsung Electronics is currently the leading phone and TV maker. However, even with their leading position, the company posted weaker profits than forecasts. Samsung is not selling as expected for April to June quarter.

The operating profit for the company is 9.5 trillion won ($8.3bn; £5.5bn). Analysts predicted that it would be around 10.1tn won. Samsung's booming position has been largely due to smartphones sales. However, the company must come up with something new sooner if it wants to stay on top. Apple was the standard before but things changed just as quickly upon their loss of Steve Jobs.

Analysts are concerned about the growth rate of the company. The launch of new line of products is not giving enough returns and growth rate has slowed down. Samsung share over 3% following profit guidance. Since the start of June, their shares have dropped an average of 15%.

"The slowdown in its handset business appears to be worse than expected and the disappointing result simply reinforces the market view that Samsung's smartphone growth momentum is slowing," Lee Sei-chul, Seoul-based Meritz Securities, said.

The company needs to diversify.

The popularity of the Galaxy phone series boosted Samsung's position in the market. However, putting out models in similar fashion regularly may not be the key to sustaining the company's growth. Samsung currently holes more than 95% of the Android smartphone market but analysts are growing concerned about the trend for the past few weeks especially from April to June. The declining sales can harm the profits of the company.

South Korea's Woori Investment & Securities lowered their earnings forecast for Samsung. Goldman Sachs, JP Morgan and Merrill Lynch followed suit. Growing concerns were also due to the launching of new products from Chinese firms and other rival companies. Analysts suggest that Samsung should become more diversified and offer the market fresh products to maintain their position.

"One of the biggest risks for Samsung Electronics going forward is that 70% of total operating profit comes from mobile business," Jeff Kim from Hyundai Securities pointed out.

"Diversification is key. Wearable devices are the next stage in a saturated industry that needs constant innovation to survive.

"We'll see flexible smartphones in the fourth quarter from Samsung and LG Electronics, and iWatch and Galaxy Watch are expected to be one of the first waves."