Apple Inc. (AAPL) iPhone 7 May Benefit From Galaxy Woes

Apple Inc (AAPL) iPhone 7

Apple Inc. would soon come up with the iPhone 7, but before that a news that could possibly lift the popularity of the upcoming iPhone has come, but not from Apple, but from arch rival Samsung. The Korean firm’s Samsung’s Galaxy Note 7 smartphone has been facing battery issues, and it is one of the bigger foul-ups in the short history of the smartphone.

Apple may not to benefit much

Samsung is required to recall 2.5m phones due to this error. Though the error is huge, it won’t make Samsung customers buy Apple devices, CNBC got to know from experts. There were reports that the Galaxy Note 7’s batteries were exploding during or after charging, forcing the Korean firm to stop sales of the device.

Samsung vs Apple (AAPL)

The timing is too crucial as Apple Inc. is very close to unveiling a new smartphone – the iPhone 7 – at an event next week provided it sticks to the convention. As per Daniel Newman – principal analyst at Futurum Research – before being able to win over Samsung customers, Apple has to prove a lot. Both firms duke it out for each other’s customers, and hence, it may come down to software.

Newman said, “I don’t think the market pays a ton of attention to the news. People that walk into a store to buy a new phone, and they ask, ‘What’s the $99 dollar smartphone this month? What comes free with my plan?’ That’s a huge chunk of the market.”

An interesting battle for sure

As per Newman, the market is waiting for the clash between the two majors, and if the heavily priced new iPhone fails to impress, then there will is a chance for another player to poach buyers, who care more about their OS than the specs.

“I think anytime nowadays that there’s a manufacturing issue, it makes people take pause,” the expert said.

As per the reports, there will be a few changes in the iPhone 7. Rumors claim the new iPhone will come with a dual-lens camera, new body color, improved waterproofing, slightly thinner chassis, no headphone jack and more memory.

Meanwhile, Samsung’s Galaxy Note 7 has seen better than expected demand, and also got positive reviews. Ramon Llamas – research manager for IDC’s mobile phones team – said the device boasts of some unique note taking functions and security features such as iris-scanning. The Korean firm has yet another promising device i.e. the Galaxy S7 edge capable of drawing in premium users, notes CNBC.

Nothing can be said for sure, if the issue with the Galaxy Note 7 will benefit Apple Inc. or not. We may have to wait for a few months to know the exact results.

On Friday, Apple shares closed up 0.94% at $107.73. Year to date, the stock is up almost 1% while in the last one-year, it is down almost 5%.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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