Samsung reported Thursday a 40 percent on-year drop in its fourth-quarter net profit as the world's top handset maker continued to struggle with slowing global demand for smartphones and fierce competition from cheaper rivals.   

Net profit for October to December amounted to 3.22 trillion won ($2.7 billion), down 39.7 percent from a year ago, the company said in a statement. 

Operating profit rose 16.1 percent on-year to 6.1 trillion won, in line with its earlier estimate.