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SEOUL Samsung Electronics Co expects sales of its new Galaxy S III, launched at the end of last month as a main rival to Apple's iPhone, to top 10 million during July, making it the South Korean group's fastest selling smartphone.
In the United States, where sales were launched last Thursday, major carriers including Sprint Nextel Corp, T Mobile and AT have not been able to offer the Galaxy with 32 gigabytes of memory, partly due to tight supply.
"Due to overwhelming demand for the Galaxy S III worldwide, Samsung has informed us they will not be able to deliver enough inventory of Galaxy S III for Sprint to begin selling the device on June 21. We Converse Maroon Low Top
get better from next week," Shin said.
Shares in Samsung dropped 4.2% on Monday to a four and a half month low, after more brokers cut their quarterly profit outlook, citing concerns over its chip and telecoms businesses. The benchmark KOSPI stock index was down 1.2%.
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Profit from Samsung's mobile division nearly trebled in January March to $3.6 billion US, accounting for 73% of group operating profit.
are working closely with Samsung on a delivery schedule to support our launch," Sprint said on its web site. It has yet to start shipping pre orders for the 32 GB version.
Analysts have downgraded estimates for Samsung's second quarter smartphone shipments in recent weeks, predicting that sales of the latest Galaxy model have triggered a steeper than expected drop off in sales of earlier products. They also cited tight supply of the S III model and growing competition from low end manufacturers such as Converse Shoes Ladies Size 6 Huawei Technologies and ZTE Corp.
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GS3 sales expected to top 10 million in July
its current weakness in the chip sector, it appears investors are also worried that global macroeconomic woes may eat into handset sales in the second half," said Han Seung hoon, an analyst at Korea Investment Securities.
"We're getting far better reviews on S III than we did with its predecessors globally . and supply simply can't meet soaring demand. We've sent executives and staff to almost all our (component) suppliers to ensure a smooth offering and hopefully things will Converse Shoes White Colour
"The overall market condition was challenging due to euro zone issues and tight supply of components . but (our) second quarter results will be better than the first quarter," JK Shin, head of Samsung's mobile division, told reporters.
Samsung sold 44.5 million smartphones in January March equal to nearly 21,000 every hour giving it 30.6% market share. Apple sold 35.1 million iPhones, taking 24.1% market share.
JPMorgan cut its forecast for Samsung's second quarter smartphone shipments by a tenth to 50 million units.
Samsung launched its first Galaxy model two years ago in a rush to counter Apple's iPhone success. Then, Samsung's smartphone market share was below 10%. It has since overtaken Apple, and the company said in late April that new Galaxy smartphones would "substantially contribute" to second quarter results.
Shin said Samsung was also doing well in the low end segment of the smartphone market.
It also predicted earnings from its handset division would be higher in the current second quarter than in January March, countering market concerns that tight supplies of the new Galaxy model and the weak global economy would pressure earnings at Asia's most valuable technology firm.
Samsung kicked off global sales of its Galaxy S III on May 29, but shipments have been affected by the tight supply of parts such as the handset casing for the pebble blue model.
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