Samsung Electronics says its earnings for the final quarter of 2015 have plunged 40 percent over a year earlier.

The South Korean company said Thursday its October-December net profit was 3.2 trillion won ($2.7 billion). The result falls short of expectations. Analysts expected 5.05 trillion won in net income, according to FactSet, a financial data provider.

Sales were up 1 percent to 53.3 trillion won while operating income rose 16 percent to 6.1 trillion won, in line with its earnings preview earlier this month.

The latest results reflect new challenges for Samsung as two core businesses, smartphones and semiconductors, face a slowdown. Weakening global demand for smartphones is taking a toll on Samsung's sales of mobile components to companies like Apple, as well as sales of Samsung's own mobile devices.