Samsung Electronics' 2Q profits down 20 percent

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Samsung Electronics Co. says its second-quarter profit dropped 20 percent as smartphone and tablet sales fell.

The South Korean company says its net income during the April-June quarter was $6.1 billion, the lowest since the second quarter of 2012 and below forecasts.

Samsung had warned that the second quarter would be the worst in two years as its handset business halted growth.

It struggled to compete in the cheap smartphone business, which is the fastest-growing smartphone segment.

Sales fell 9 percent while operating profit sank 25 percent, in line with Samsung's guidance earlier this month.

The company's reliance on its semiconductor business for profit is expected to increase as it cannot expect an explosive growth of handset profit anymore. Samsung is the world's largest maker of memory chips.

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