Operating profit rose just 5.7 per cent to £10.14 billion ($13.3 billion) in its second financial quarter, its lowest climb since the first quarter of 2017.
Semiconductors generated 11.61 trillion won in operating profit between April and June, posting a 44.6 percent year-on-year growth.
Samsung's mobile business accounts for almost 40 percent of the company's sales.
While Samsung's profit growth may have slowed, the company's chip sales have been stellar.
The chip unit posted a record 11.6 trillion won operating profit in the second quarter, up 45 percent from a year ago and almost 80 percent of its total operating income.
"Looking forward, more affordable premium devices might be the solution the market needs in the second half of the year to drive shipments back in a positive direction", IDC research manager Anthony Scarsella said at the time.More news: Bryce Harper 'glad' Nationals chose not to trade him
Xiaomi and Huawei have made massive inroads in the Chinese and Indian markets, which are the two largest smartphone market pools on the planet.
Obviously though with all that added competition, it was always going to be hard for the likes of Apple and Samsung to maintain their success and it appears it's the latter company that is struggling most to keep with the times as a recent earning call to shareholders (as reported by The Verge) has revealed the flagship Galaxy S9 is not selling as well as hoped. Its semiconductor business continues to do resoundingly well, with continued increases in sales and profits.
Apple is expected to report a rise in revenue and profit for the third quarter on Tuesday, helped by resilient sales of its iPhones. Its phone business reported 2.67 trillion won in operating income during the three-month period, compared with 4.06 trillion won a year earlier.
Reuters claimed that it was all because the Galaxy S9 device missed sales targets and Samsung had lost its leadership of the smartphone market.
Samsung attributed the robust performance of the consumer electronics business to improved sales of high-end TVs, including the QLED TVs.
It was driven by demand for DRAM chips used in data centers and NAND flash memory for high-capacity storage, said Samsung that focused on value-added products such as 64GB and higher-density server DRAM based on the 1X nanometer technology and 128GB and higher for NAND mobile storage. "The mobile market condition will likely remain challenging in the second half of the year amid pricing competition and new product launches". "Its third-quarter operating profit is expected to hit 16.8 trillion won", said Lee Seung-woo at Eugene Investment & Securities.