It seems Apple is not the only company struggling to sell smartphones. Samsung Electronics has announced a revised company guidance that reveals profits are going to be down, and one of the leading reasons is its slumping smartphone business.

Overall, the South Korean company is anticipating an operating profit for Q4 2018 to come in at $9.27 billion, down 28.7-percent from a year ago.

Samsung gave two reasons for the stark decline: the first is a lackluster demand in the memory chip business from which it used to make good profit, and the second is the growing competition in the smartphone market. Over the third quarter of 2018, Samsung’s smartphone business fell 13-percent from year-over-year and continued into the fourth quarter.

The smartphone has reached peak maturity while prices continue to go up. This hasn’t been a good formula to allure people to upgrade. Coincidentally, Samsung understands this and is trying to push new innovations forward in 2019 with things like its Infinity-O display.

It’s unclear if that will stick, but what we do know is that it’s been a tough quarter for many smartphone companies. Samsung will report its complete earnings report later in January.