Competition would heat up in the coming months as new smartphone models were released, it added. The unit generated 11.6 trillion won in profits, about 80 percent of its total income.
What Samsung said:The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches.
China's Huawei Technologies [HWT.UL], the world's third-largest smartphone maker, earlier on Tuesday posted the slowest growth in its first-half sales since 2013.
Despite some bumps in the road, the company's outlook remains sunny for the second half of 2018.
Samsung's chip division has seen mixed performance over the past few months. That ended six straight quarters of earnings growth. The company managed to sell just 9 million units of Galaxy S9 in the second quarter.
Samsung Electronics has revealed that the Galaxy S9 is not selling well, despite the company's efforts of making the phone company's most capable and polished smartphone to date.
The move comes as the global market for premium smartphones hits a wall, with customers no longer as eager to shell out for expensive devices.More news: Meghan Markle’s sister Samantha signs up for Celebrity Big Brother
There is no doubt that the high-end smartphone market is taking a kicking but Apple is also suffering.
Another feature you may find even more useful than DeX is Samsung's S Pen stylus, which comes in the box with the Galaxy Tab S4, lets you jot notes and draw doodles. The Samsung rival already uses the OLED panels in the iPhone X and two new phones are expected from Tim Cook's team later in the year.
It's also thought that Samsung will push its display technology to a new level with an unbreakable edge-to-edge screen that covers every corner of the phone.
The world's biggest chip and smartphone maker said operating profit rose 5.7 percent to 14.9 trillion won ($13.3 billion) in the second quarter, slightly ahead of its 14.8 trillion won estimate. The company said it plans to showcase various QLED models to meet with the high seasonal demand expected for later this year.
Samsung then said it is preparing the release of micro LED TVs customized for businesses and households, respectively.
Samsung Electronics said it has allocated 8 trillion won in facilities investment for the second quarter.
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. Revenue was also down 20 percent year on year to 24 trillion won.
Samsung shares were down 0.5 percent in early trading, compared with 0.2 percent drop in the broader market.