Samsung's profit jumps 50%, but mobile business shrinks

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Samsung Electronics, the world's biggest smartphone maker, reported a second quarter net profit that jumped 50 percent from a year earlier, but its mobile business shrank, underscoring concerns about flagging growth in the division.

The South Korean firm posted a net profit of 7.77 trillion won ($7 billion) for the April to June period from 5.05 trillion won a year earlier, in line with estimates.

(Read more: Samsung still Asia's most popular brand, beats Apple)

Profits at its mobile division, the biggest earnings generator, jumped 52 percent to 6.28 trillion won from a year ago but fell 3.5 percent from the previous quarter.

The reporting period included the launch of its flagship Galaxy S4 in April, backed by a massive advertising campaign, in Samsung's biggest assault yet on arch rival Apple's iPhone.

(Read more: Smartphone 'saturation' fears for Apple, Samsung)

Earlier in the week, Apple reported second-quarter earnings results that beat analyst estimates but showed a sharp drop in Chinese revenue, reflecting the challenges it faces in its second-largest market as competition intensifies and more Chinese manufacturers make ground in the popular mid- to low-end cellphone market.

Samsung has been hit by growth concerns as smartphone sales slow and margins shrink. Still, the South Korean firm has been working to keep a high profile with consumers by releasing a steady stream of new models across all price ranges.