On October 10, 2016, the Apple iPhone’s market shares hit record high for the year. Samsung’s Galaxy Note 7 has been giving a tough time to Apple iPhones in the smartphone market. But the repeated complaints about the overheating of Note 7’s battery resulted in the refusal of mobile carriers to provide replacements.
Finally, the South Korean tech giant – Samsung – had to suspend further production of the phone. Such a step by the company sounded a death knell for the product. This, in turn, provided Apple iPhone a chance to grab greater market share and it did!
Angelo Zino, an equity analyst as the CFRA Research, has predicted even better future prospects for Apple. It is particularly because the failure of one of the long awaited and advanced smart gadgets from Samsung (Note 7) will cause disappointment and mistrust among the users. Obviously, this unfortunate episode is likely to affect the acceptability and sales of the company’s future products.
With the increase of 1.75 percent, the Apple’s shares rose to $116.75 on Monday, 10th October which is the highest level since 10th December, 2015. When asked to comment on the stopping of sale and exchange of Samsung Note 7 by the carrier partners, Samsung reported, "We respect the decision of the mobile carriers to stop the sales and replacement of the product in response to the reports of heat damage issues".
Here it is pertinent to clear out possible misconception about Samsung’s overall level of market shares. In the Korean trading session, the company’s shares closed down 1.52 percent. Despite this downfall, the shares are still up 15 percent in the three months’ period. This is because the earnings have been significantly more than expected during the past few months.
What makes Samsung stand the test of this unfortunate time is the production of a wide range of smartphone models. At the same time, the company also produces smartphone screens and chips for the rival smartphone companies in the market.
The debut of iPhone 7 and failure of Galaxy Note 7 gave a golden opportunity to Apple to take its shares up by 20 percent during the period of past three months. The analysts say that the company is expected to sell around 45 million smartphone units in the September quarter this year which is up from 39 million units in 2014. Here you will be surprised to note that expected sales for the present September quarter is down from 48 million units in 2015.
