(Telecompaper) Samsung Electronics reported a drop in second-quarter results, hurt by the slowdown in the tablet market, costs for launch of its new flagship smartphone and increased competition on the low end of the market, especially in China. Revenues were down to KRW 52.35 trillion from KRW 57.46 trillion a year ago, and operating profit dropped to KRW 7.19 trillion from KRW 9.53 trillion. The mobile handset division recorded operating profit of KRW 4.42 trillion on sales of KRW 28.45 trillion, down from profit of KRW 6.28 trillion and sales of KRW 35.54 trillion a year earlier. Samsung said the smartphone market was flat compared to the first quarter and the tablet market slightly lower. Demand was solid in the US, but weak in Europe due to high channel inventories. In China, 3G demand weakened in anticipation of the launch of LTE, and the company faced heightened competition from local manufacturers. Samsung said the smartphone market is expected to improve in the second half of the year, on the expansion of TD-LTE in China and reduced inventories in Europe, while the tablet market should pick up towards the end of the year due to holiday promotions.