Samsung Electronics Profit Growth Slows

South Korean tech giant Samsung Electronics Co Ltd estimated on Friday earnings grew at the slowest pace in more than a year in the second quarter, as analysts said weak smartphone sales likely offset record high chip earnings. Samsung shares fell 2% as the guidance gave investors insight into how badly the decline in smartphone profitability is hurting the company’s bottom line, after it warned in April of an earnings slowdown amid tougher competition, Reuters reported. The world’s biggest maker of memory chips, smartphones and TVs said April-June operating profit would grow 5.2% to 14.8 trillion Korean won ($13.2 billion), just missing an average estimate of 14.9 trillion won from 18 analysts polled by Thomson Reuters. While the chip business would post its seventh consecutive record quarterly profit, analysts say, lackluster smartphone earnings growth fueled concerns the mobile business is running out of ideas to underpin sales of its premium Galaxy devices.