This may sound alarming but this may be the first onset of Samsung’s struggle to stay ahead of the smartphone race as they have recently released reports that they are expecting drops in operating profit in the second quarter of the year.

What is alarming is that they are reporting profits of 7.2 trillion won ($7,117,212.64 USD) as compared to 9.5 trillion won (9,390,566.44 USD) the previous year, which is 24 percent down – a first in two years.

They have accounted this dip to the strong currency and a sluggish smartphone market as the main factors. Also, with the rise of Huawei and Lenovo in the current largest handset market in China, Samsung has seen high inventory levels for smartphones on the low-end and mid-end categories.

The nightmare seems to be recurring as well in the North America and Europe regions, in which Samsung has a stronghold with their high end range of products. They have yet to see the sales of their current flagship smartphone, Galaxy S5, pick up since its release due to the increased presence of the Chinese competitors.

The industry watchers have also put an alarm on Samsung, as they have yet to see any plans that may spark growth in the place where they call the shots. Analysts have also stated that as much as Samsung raked a total of 8 trillion won ($7,910,947.46 USD) in operating profits last year, it is unlikely that they will perform as well as last year although Samsung may have improvement in sales later this year.

Will this be a sign that the industry giant has met their match? What is sure is that with the myriad of new Chinese smartphone brands like Xiaomi and Oppo chasing behind, Samsung has to pull up their socks or these competitors will give Samsung a good reason to make their exit planning soon.

Samsung’s Brazilian factory was recently raided by robbers who got away with $6.3 million worth of cellphone, tablets and computers.