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...eferring to the closely coupled software and services Samsung needs to distinguish its devices from dozens of cheaper rivals.Samsung Electronics’ operating profit fell to a two-year low in the second quarter as it lost market share, despite still shipping nearly a third of all smartphones worldwide.Research firm Canalys says Samsung lost its title as No. 1 smartphone player in China, the world’s biggest market, to Xiaomi Inc during the April-June quarter. It continued to lose market share in other emerging markets, analysts say, undercut in part by rivals producing increasingly attractive products at much lower prices in the lower end of the market.Part of the blame goes to the Galaxy S5, which is seen widely as a disappointment since its global launch in April. Research firm Counterpoint estimates the flagship premium phone was outsold by the much older Apple iPhone 5S in May, and analysts say it failed to deliver major improvements from its predecessor.NEEDING A BIG HITWhile the new Note device appears to meet expectations on key features such as the quad high-definition display and a 16-megapixel rear-facing camera, the improvements are incremental and suggest further struggles ahead for Samsung to differentiate its product, especially with large-screen iPhones on the way.“It is an acknowledgement that Samsung took a wrong turn with the move into plastic cases and that its designs didn’t move fast enough to keep pace with many competitors,” said Ben Wood, a mobile industry analyst with UK-based CCS Insight.“The importance of metal cases is that it...