Samsung is leading in the display technology, and memory chip. The broken relationship between Samsung and Apple may not be that bad to Samsung. Samsung can focus on its own Android, and win(when it's ready) by using better hardware components(display, faster chip). Samsung doesn't have Apple OS development overhead. It just has to do some customization for the Android. The margin of the Samsung's high-end phone should be good enough for Samsung to continue.
Samsung Galaxy SII got very good review. It's doing very well in Asian and European. It will be introduced in US at the end of Aug. Almost all major carriers(AT&T, T-Mobile, Verizon, Sprint) will have its version next month.