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Samsung, the world's largest maker of memory chips, smartphones and display panels, reported explosive profit growth in 2017, driven by an unprecedented boom in memory chip business.

Samsung made an operating profit of 14.87 trillion Korean won ($13.3 billion approx.) on sales of 58.4 trillion Korean Won ($52.3 billion approx.). Now, Samsung has also given a price cut to the popular Galaxy J6 smartphone for the second time.

Samsung's chipmaking unit, which dominates the global market after the firm invested tens of billions of dollars to build and expand factories, provides chips for the company's own devices as well as those manufactured by competitors including Apple. The display business also suffered from falling shipments and prices for its LCD panels.

With the chip business accounting for a whopping 78.1 percent of the combined operating profit in the second quarter, however, industry watchers said Samsung should do more to ease such a heavy dependency.

In the second half of 2018, Samsung expects demand to grow for its flexible OLED panels and continued strong demand for its memory products. The company now accounts for just 1 percent of Chinese smartphone sales, down from 3 percent a year ago, according to data from Counterpoint Technology Market Research. Samsung said it will increase the portion of 10-nanometer-class products and the mass production of 5th-generation V-NAND, while addressing demand for high-density server memory and high-bandwidth memory. Sales of Galaxy S9 and other flagship smartphones declined while it had to spend more marketing expenses to promote phones. The Galaxy Note9 is scheduled to launch on August 9.

The official leak comes a week before Samsung's much hyped NY event, where the company is expected to unveil a new Galaxy Note smartphone and had been tipped to launch tablets, a smartwatch, and potentially its first smart speaker.

It could be a possibility that Samsung's budget smartphones are not finding many buyers or company is having afterthoughts about the pricing. One of the variants is said to offer 512GB storage, a first on any Samsung phone ever. He also thinks Samsung could have a three-generation lead over its rival Apple Inc.'s iPhone when it comes to 5G technology, something that would also help its cause going forward.

The company spent 8 trillion won (7.2 billion US dollars) in capital expenditure in the second quarter, including 6.1 trillion won (5.5 billion USA dollars) for the chip business and 1.1 trillion won (984 million USA dollars) for the display panel division.

Samsung shares slid 0.5 percent by 0254 GMT, compared with 0.1 percent drop in the broader market.