Samsung gave up on the Galaxy Note 7 this week, following the second series of fires affecting replacement units that were supposed to be safe. But the problems are just starting. Samsung still has a lot of work ahead to fix this mess, and the company stands to lose even more money in lost profit on top of the estimated $17 billion in missed sales because Samsung is going into the Christmas quarter without a hot new smartphone in stores. The worst thing about it as far as Samsung is concerned, however, is that the Galaxy Note 7 debacle might help Apple sell even more new iPhones.
MUST SEE: This video might be our first look at a new Apple device no one even knew was in development
Apple’s iPhone 7 isn’t expected to break iPhone sales record this quarter. But Brian White from Drexel Hamilton wrote in a note to investors seen by Barron’s that Apple stands to sell at least 8 million more iPhones this year because of the mess with the Note 7.
“With original market expectations for approximately 10-14 million Galaxy Note 7 units in H2:2016 (availability began on August 19), we believe Apple has an opportunity to pick up at least 8 million incremental units in CY:16.,” the analyst said. “Moreover, this fiasco could permanently damage the Samsung brand in the smartphone market, a big opportunity for Apple to gain market share.”
Additionally, White also said that the iPhone 7 is already doing very well in markets around the world, including in China.
“During our visit to over 30 smartphone stores and electronic retailers in Shenzhen this week, we could feel the momentum of Apple’s iPhone franchise and the struggles at some of its important competitors in China,” he wrote. “The iPhone 7 Plus is clearly favored over the iPhone 7 in China, while the two new black colors were the most popular.”
Moreover, two leading China-based telecom carriers said that iPhone 7 demand has exceeded last year’s iPhone 6s demand. Samsung should indeed be worried about the quarter ahead.
