July 5, 2011

Samsung: Over 3 Million Galaxy S II Smartphones Sold

According to recent reports, Samsung has sold over 3 million units of its Galaxy S II smartphone since its debut in late April.

Analysts believe the Android-based smartphone could be the company's best-selling model ever.  The company has captured 17 percent of the world smartphone market in the past three months.

According to a report by the Guardian, Samsung is expected to make a strong profit growth from smartphone sales in the second half as it introduces the Galaxy S sequel in North America and expands sales of Galaxy Tab 10.1.

"Samsung's smartphone shipments would have jumped 67% from the previous quarter and topped market estimates ... because there were few products in the market that can match Galaxy S II, as Apple appears to be delaying new iPhone debut due to disruptions in parts supply, while Nokia continues to fail to introduce competitive lineups," Jin Sung-hye, an analyst at Hyundai Securities, told the Guardian.

The report said that Samsung still faces other threats following the outcome of an auction of Nortel patents during the weekend, which was won by a consortium of Apple, Microsoft RIM, Sony, Ericsson and EMC for $4.5 billion. 

"Given that these are essential patents for wireless telephony standards within the portfolio, everybody who sells a device that accesses the mobile network will infringe the portfolio," Richard Windsor, financial analyst at Nomura Securities in London, told the the Guardian.

"We believe that the going rate for this part of the portfolio will be somewhere between 0.5% and 1% of the wholesale price of the device and much of the mobile industry is probably already licensed."

Samsung is Asia's most valuable technology firm with a market value of about $134 billion.  The company is expected to announce detailed quarterly results in late July.

According to Reuters, Samsung is likely to report $3.7 billion in April-June operating profit on revenue of $37 billion.


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