Samsung expects new Galaxy S smartphones to be hot sellers
TECH giant Samsung Electronics said it expects record shipments for the new Galaxy S smartphones that go on sale today, but will have trouble meeting demand for the curved-edged model due to production constraints.
The S6 models are expected to sell briskly following a string of positive reviews, boosting hopes for an earnings recovery this year, after the company estimated its January-March operating profit reached the highest level in three quarters.
Strong demand for the curved-screen variant, which costs as much as US$120 (S$163) more than the regular S6 in South Korea, could further lift margins and propel earnings for the firm's struggling mobile division, investors and analysts have said.
But the head of Samsung's mobile business, J. K. Shin, told reporters there would be supply constraints in the near future for the curved-screen S6 edge model, although the company had been working hard to improve production yields.
The company has not said what its shipment record is for one of its handset models, but the Galaxy S4 is widely seen as Samsung's previous top seller, with Nomura estimating shipments of 43 million from its early 2013 launch through the end of that year.
Mr Shin said that while Samsung opted to use its own mobile processor and modem chips in the new Galaxy S phones, the firm expects its partnership with Qualcomm to continue, adding that it could opt to use the United States chipmaker's products in the future for new devices.
The new Galaxy S devices go on sale in 20 countries today. The devices will hit retail stores in Singapore tomorrow, with the S6 starting from S$998 and the S6 edge starting from S$1,168 without contract.