SEOUL, South Korea (AP) — Samsung Electronics Co. says its second-quarter operating income has declined to a two-year low.

The South Korean company said Tuesday its operating income was 7.2 trillion won ($7.1 billion) for the three months ending June 30.

The quarterly profit represents a 24 percent drop from the previous year. It is below analysts’ expectations of around 8 trillion won.

Sales fell 10 percent from the previous year to 52 trillion won in the period.

Samsung blamed the weak profit on the Korean currency’s appreciation against the U.S. dollar and the euro. It also said sales of medium- and low-end smartphones were weak in the Chinese and some European markets because of stronger competition and sluggish demand.