updated 09:43 am EDT, Mon June 25, 2012
Stock tumbles despite strong outlook
As Samsung delays its Galaxy S III launch in North America and other markets, the company has noted that it expects the device to surpass 10 million shipments by the end of July. Chief executive J.K. Shin, speaking at a launch event, claimed the third-generation Galaxy S has been met with "more positive reviews" than its predecessors, helping to fuel better-than-expected demand in most markets.
"We're doing fairly well in emerging-economy markets," Shin said, according to quotes posted by AFP. "I think our second-quarter earnings will be better than the first quarter's, despite the difficult economic situation in Europe."
The company has embraced Android to battle Apple's iPhone, releasing its new flagship Galaxy S III after pushing the platform forward, through a device co-developed by Google, with the Galaxy Nexus. The Galaxy S III sports a larger 4.8-inch display, along with a quad-core Exynos processor in international markets.
Samsung's first-quarter smartphone shipments are said to have reached 44.5 million units, outpacing Apple's 35.1 million iPhone shipments during the same quarter, according to numbers collected by research firm Strategy Analytics. Apple is widely expected to release its sixth-generation iPhone later this year, though it remains unclear if the launch will help the iOS platform regain its lead in the smartphone arena.
The Galaxy S III has been well received in many countries, however the US and Canadian launch timing has been delayed. The US-bound variants feature a dual-core Snapdragon S4 chipset rather than the quad-core Exynos components of the overseas models, trading two processing cores for LTE and HSPA+ compatibility.
The launch delays have caused some analysts to question Samsung's revenue outlook for the second quarter. The company's stock is down more than five percent in early Monday trading, in contrast to a slight decline in the broader technology sector.