Failure of Note 7 Could Give Apple 5-7 million New iPhone users - iPhoneHeat

Failure of Note 7 Could Give Apple 5-7 million New iPhone users

Huawei and Apple are the two main beneficiaries from the discontinuation of the Samsung Galaxy Note 7. In the start of September, some users reported about exploding Note 7 batteries. These Reports became the root cause to the official Samsung Note 7 recall. This unexpected discontinuation of Note 7 will increase the sale of iPhone 7 and iPhone 7 Plus about 5 to 7 Million units, speculates Ming-Chi Kuo who is an analyst of KGI Securities and also very well-known in the mobile industry.

In his Note to investors, a copy of which was obtained by MacRumors, Kuo also thinks that Huawei will also benefit from the recall of Note 7. Huawei is going to launch Mate 9 and analysts thinks Mate 9 is going to be an attractive alternative of Samsung note 7.

note 7 explosion

Consumers that have switched from Note 7 to iPhone after the recall and halted production can be identified as having the following characteristics: (1) no trust in the Samsung brand anymore; (2) could be former iOS users; (3) like dual camera feature; and (4) like the subsidy packages of telecom operators (iPhone 7 and 7 Plus were the most promoted flagship models in September).

Before Samsung Discontinued its Note 7, the analyst had expected 12-14 million units of the device to be shipped in 2016. But after the exploding batteries fiasco followed by the discontinuation of Note 7, he now thinks 5 to 7 million of those expected Samsung customers will move toward Apple brand.

Now Samsung is now reportedly paying careful attention toward S8 development. Samsung is planning Dual camera system in its upcoming Galaxy S8. According to Kuo, if Samsung made another Note 7 like blunder, it may destroy the Samsung brand in the mobile industry.

Apple needed something to see a boost in their iPhone 7 sales. Recall of Note 7 increased the demands of iPhone 7 and iPhone 7 plus, especially the larger iPhone 7 plus because of its dual camera system. Kuo believes that Apple’s benefits from Note 7 discontinuation have already peaked out and the company needs four to five weeks to accommodate the order of iPhone 7 plus.

Kuo also believes that Huawei Mate 9 will become a popular choice among Android users who are going to switch from Samsung Note 7 to anther phone but want to stay in Android world.

Note 7 has turned out to be a big fail for the Korean giant which has also affected customers’ loyalty towards the brand. The analyst believes that if Samsung’s upcoming flagship suffers from similar mistakes the Note 7, the Samsung brand “will be hurt immensely.”

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