Galaxy S III's Chaotic U.S. Launch Could Cost Samsung Millions

IT Management

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It's clear now that Samsung underestimated how popular its new flagship Android smartphone would be. Sales of the Galaxy S III are predicted to top 10 million units by the end of July. However, supply problems have begun to become a problem, and as a result, the U.S. launch of the smartphone has been a confusing mess.

Reuters is reporting today that Samsung believes their supply problems are nearly behind them. Samsung admitted to underestimating demand for the smartphone, telling Reuters that, "It is simply that demand far exceeded our expectation. But that doesn't mean we had set a very conservative demand forecast." Reuters also reported that a problem with the design of the "pebble blue" version of the device was part of the reason for the manufacturing delays.

According to financial analysts cited by Reuters, the delays have hindered the shipment of an estimated 2 million Galaxy S III devices, meaning millions in lost sales this month for Samsung. Samsung seems to be telling the truth about the supply problems being fixed, though. Barclays, a British financial services company, revised its third-quarter shipment forecast for the device from 1 million units to an amazing 15 million.

Despite the delays, it's clear that Samsung's new smartphone is on fire (figuratively and literally). It's also clear that Samsung has propelled itself past HTC and Motorola to become the strongest Apple competitor in the smartphone market. If the company can continue its success, it's not unimaginable that rumors of it splitting off from the Android community and creating its own software ecosystem could come true.

As for Android fans in the U.S., most customers should be able to get their hands on a Galaxy S III by June 28. Verizon customers, though, will have to wait until July 11 for the phone to go on sale.