Samsung Electronics said Tuesday it would sell its optical material business to Corning Inc., in the latest move to reorganize the firm's portfolio amid falling profits from its handset division. Under the deal, the world's No. 1 maker of smartphones will sell its optical material-related facilities in South Korea, as well as its China-based subsidiary Samsung Electronics Hainan Fiberoptics Co., an optical fiber cable manufacturer.

The world's top maker of smartphones has been caught between Chinese rivals like Xiaomi at the low end and Apple's iPhones at the top. Samsung Electronics' share of the global smartphone industry has shrunk year-on-year for the last three quarters.

The firm also said in October it will halt its light emitting diode lighting business outside of its home country.

Corning said the deal will strengthen its fibre optics business in the Asian market.