Verizon will not carry the Samsung Galaxy S2 when it launches in the U.S. later this year, in a setback in Samsung's attempt to challenge the iPhone.
The Basking Ridge, N.J.-based carrier cited its already extensive portfolio of devices, including the 4G Samsung Droid Charge, as the reason for passing on the device. Samsung is expected to announce next week that AT&T, Sprint and T-Mobile will begin carrying the Galaxy S2 in September.
The strong reviews of the Galaxy S2 and the device's performance overseas has analysts calling it a legitimate threat to the iPhone. Samsung expects to sell more than 10 million S2 handsets internationally by the end of the year, and has scheduled a September launch of the device in the U.S. to get a head start on the iPhone 5, expected to launch in October.
However, the Galaxy S2 will likely have a tough time competing with the iPhone without Verizon's support. Without access to Verizon's customers, Samsung will likely suffer the same problem Apple has in China, where the iPhone has failed to take off largely because China Mobile, the nation's largest carrier, does not sell the device.
Although the S2 will have help from smaller providers Sprint and T-Mobile, it likely won't be enough to combat losing Verizon's more than 90 million potential customers. And if the rival iPhone 5 comes to Sprint and T-Mobile, as analysts are predicting, the S2 will truly have its work cut out for it.
Samsung's sales have also been hurt by its. A Dutch court this week barred the company from selling any Galaxy smartphones in the Netherlands and 30 other European countries. Meanwhile, the International Trade Commission is currently investigating whether ban the Galaxy S2 in the U.S.
Samsung has lately been putting a great deal of energy into its smartphone business. The S2's launch in September is expected to be just the beginning of Samsung's deployment of an entire line of Galaxy phones. The company this week announced it will release four more Galaxy branded phones by the end of the year, as it attempts to flood the market with high- and low-end offerings.
While the Galaxy S2 appears to be a worthy competitor to Apple, the lack of support from Verizon and legal troubles may keep Samsung from making a significant dent in the iPhone's sales this time around.