Samsung Electronics expects the sales of its latest smartphone Samsung Galaxy S3 to top 10 million during July, making it the company's fastest selling smartphone.
The prediction came just a few days after a consumer from Ireland claimed that the battery of his Samsung Galaxy S3 exploded behind his car. A source close to Apple also claimed that its upcoming Apple iPhone 5 will put Galaxy S3 to same.
Samsung Electronics predicted that its second quarterly earnings will be higher than in January-March in spite of the continuing weak global economy and stiff competition from other smartphone makers especially the Apple iPhone.
Samsung Electronics Co (005930.KS) expects sales of its new Galaxy S III, launched at the end of last month as a main rival to Apple's (AAPL.O) iPhone, to top 10 million during July, making it the South Korean group's fastest selling smartphone.
"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.
"Looking beyond 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," Han Seung-hoon, an analyst at Korea Investment & Securities told Reuters.
Samsung earned big in the first quarters January-March with profits from mobile sales nearly trebled to $3.6 billion.
Meanwhile, shares of Samsung fell to a four-and-a-half month low on Monday, dropping 4.2 percent after brokers cut their quarterly profit outlook on concerns over its chip and telecoms businesses.
There are reports of Samsung Galaxy S3 stocks running short but sources from Samsung said that they are doing all they could for smooth supply of the much-hyped smartphone.
"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 get better from next week," Reuters quoted Shin as saying.
Samsung Electronics launched its flagship smartphone Galaxy S3 last month and has received good response from gadget lovers all over the world. It also got rave reviews from reviewers.
The international variant of Samsung Galaxy S3 sports a super AMOLED capacitive touchscreen, 16M colours, 720 x 1280 pixels, 4.8 inches (306 ppi pixel density), multitouch, Corning Gorilla Glass 2 and TouchWiz UI v4.0. It features a 1.4GHz quad-core processor and 1GB RAM.
Measuring 136.6 x 70.6 x 8.6 mm and weighing 133 grams Samsung Galaxy S3 features Android 4.0 Ice Cream Sandwich, 4G LTE connectivity, 2GB of RAM, a dual-core Snapdragon S4 processor Quad-core 1.4 GHz Cortex-A9 CPU, Mail-400MP GPU.
(With Inputs from Reuters)