The Galaxy Tab was banned from the United States, customers are still awaiting their Galaxy S III smartphones and low-end smartphones face new competition. Does it matter?
Samsung is finding the climb to the
top of the mobile industry to be a slippery one.
In Samsungs ongoing patent disputes
with Apple, a U.S. District judge in California, Lucy Koh, sided with Apple
June 26, ruling that Samsungs Galaxy Tab 10.1 tablet should not be available
for sale in the United States. Following rulings in Germany and Australia, hers
was the third court to decide this.
Although Samsung has a right to
compete, it does not have a right to compete unfairly, by flooding the market
with infringing products, Koh wrote, according to a report from Reuters
. The order will become effective once
Apple posts a $2.6 million bond, meant to protect Samsung from any damages
suffered, should the injunction later be found to be incorrect.
Even with this safety net in place,
Samsungs legal team didnt rest for a moment. The lawyers filed an appeal
approximately five hours laterrecord time, wrote consultant and patent
expert Florian Mueller on his Foss Patents
blog. Mueller added that the
ruling gives strength to Apples copycat allegations, which say the iPad and
Galaxy Pad 10.1 are substantially similar. In court, according to Mueller,
Koh held up both devices at a distance, and Samsungs legal counsel was unable
to tell them apart. Not great for Samsungs argument.
In competing against the Apple
iPhone, Samsung would appear to be having better luck. Sales of its Galaxy S
III smartphone are expected to exceed 10 million units by July, JK Shin, head
of Samsungs mobile division, told reporters earlier this week
, adding that
second-quarter revenue is expected to exceed that of its first.
During the first quarter of 2012,
Apples smartphone sales increased 88.7 percent year-over-year. Samsungs
smartphone shipments grew 267 percent during that time, according to IDC.
Meeting such demand, however, is
proving trickier than Samsung expected, and now it isnt expected to deliver
the devices before the close of its second-quarter, June 30, shifting its
revenue to the second half of the year.
Investment firm Barclays cut its
second-quarter Samsung Galaxy S III sales forecast but raised its forecast for
After debuting in 28 countries May
29, the Galaxy S III was to launch in the United States on the Sprint and
T-Mobile networks June 21, before continuing on to Verizon Wireless, AT&T
and U.S. Cellular. When the date arrived, however, T-Mobile had only 16GB models
in stock. Sprint was made to issue a statement saying that due to worldwide
overwhelming demand, it had zilch to offer.
On June 28 Sprint finally shared
that 16GB and 32GB models, in both blue and white, will be available July 1
AT&T has been coy about the
phones sales date all along, saying it will ship in July, but now it, too, is
citing supply constraints, and with July nearing, it still has no firm date
for shipping even preordered devices.
The Verizon Wireless site
maintains that its Galaxy S
III devices will ship by July 11.
Samsung is said to also be dealing
with the matter of competitors swarming it in the low-end smartphone market,
forcing the company to consider price dips on already inexpensive phones
designed for markets such as China. However, analysts told The
Wall Street Journal
, according to a June 28 report, that as long
as sales of high-end smartphones remain strong, no one is too concerned.
We are convinced that the companys
earnings cycle is still far from the peak, brokerage firm Barclays reported,
according to The Journal
While Samsung may occasionally lose
its footing, unlike too many of its competitors, it is at least on the right
road and headed in the right direction.
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