Analyst sees Apple adding 8 million in additional iPhone sales this year thanks to the Galaxy Note 7

Analyst sees Apple adding 8 million in additional iPhone sales this year thanks to the Galaxy Note 7
Samsung's decision to shut down production of the Samsung Galaxy Note 7 couldn't have come at a worse time for the company. A device that appeared at first to be a runaway hit would have completed a spectacular year for Samsung's smartphone division. The Samsung Galaxy S7 and Samsung Galaxy S7 edge were arguably the best Android handsets of the year's first half, and the Galaxy Note 7 would have allowed the company to end the year on a positive note.

But now things have changed dramatically. With Galaxy Note 7 production shut down for good, and the company telling owners of both versions of the phablet to turn them off and never use them again, Apple is getting an opportunity to pick up some extra iPhone sales. Can we quantify how many additional iPhone 7 and iPhone 7 Plus units Apple might be able to ring up due to the Galaxy Note 7 explosions? We can't, but Drexel Hamilton analyst Brian White can and actually has computed this number.

According to White, during the calendar year 2016, he sees Apple gaining an additional 8 million units in iPhone sales thanks to the Galaxy Note 7 fiasco. The analyst produces this forecast from his original expectations that Samsung would sell 10 million to 14 million Galaxy Note 7 phablets in the second half of this year. He sees Apple able to capture 57% to 80% of those sales that originally had gone to the Galaxy Note 7. The analyst says that even without the extra help Apple is receiving from Samsung's problematic phablet, the new iPhone models are doing very well in certain regions like China.

White says that based on purchases made at 30 retail stores in Shenzhen, the iPhone is gaining momentum over the competition. Overall, Chinese smartphone buyers are favoring the iPhone 7 Plus over the iPhone 7. In addition, consumers in the region prefer the two new black colors that Apple made available for iPhone buyers this year.


The 8 million iPhone handsets that Apple might be able to add to its sales this year thanks to Samsung's miscues with the Galaxy Note 7, could be the difference between Apple selling fewer handsets year-over-year in calendar 2016, or reporting growth in iPhone sales this year.



source: Barron's

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58 Comments

65. whatev

Posts: 2464; Member since: Oct 28, 2015

That's so cute of Samsung, seems like they like giving money to Apple (patents, bleeding customers, etc.) :)

64. mixedfish

Posts: 1574; Member since: Nov 17, 2013

I feel sorry for those that only choose between Apple or Samsung. Classic example of the tail wags the dog.

63. Shubham1221

Posts: 153; Member since: Jul 29, 2015

Samsung is solely responsible for all this.This badly diminishes samsung reputation.Now the people were afraid of buying samsung phones due to this issue.No one expects this kind of negligience in quality control from samsung.The worst thing is that sammy is not able to rectify the issues affecting note 7.Note 7 proved to be a most disastrous phone of this smartphone era.The most praised and costly phone of samsung has quality issues!!!!!Lets see how samsung move on from this.I think people thinks twice next year when note 8 going to launch.

61. ginno4196

Posts: 11; Member since: Oct 01, 2016

so is the truth apple really fears the note series

52. Rich123

Posts: 88; Member since: Oct 30, 2014

When is Verizon (and/or Apple) going to fix the connectivity problems with the iPhone 7s if the iPhone 7s are so perfect?

50. jeroome86

Posts: 2314; Member since: Apr 12, 2012

LG should really market the V20. It's a good opportunity for them. Don't have no boot loop issues either. To bad it doesn't have a pen. The one model they had with a pen had poor specs.

53. Whateverman

Posts: 3295; Member since: May 17, 2009

See, that's what I've been saying! So no one is going to challenge the Note series at all? The bigger screen just ain't enough, I need that S Pen and no one is even trying to offer one. There are many of us that love having it and are unfortunately have to wait for the Note 8. But the V20 could be a viable option.

49. jessy90

Posts: 162; Member since: Aug 01, 2016

I will more likley belive that note 7 useres would switch to amother android phone and not to an ios ecosystem. I just dontlike ios is to limited. Everything is itunes. Best option is the LG V20.

47. lilleonso

Posts: 11; Member since: Sep 13, 2016

They will probably have to rebrand the note line for next years model.

41. Sakeem

Posts: 865; Member since: Sep 05, 2012

8 million seems like a very high number. Not sure they would get that amount. Maybe if the Plus was Apple pencil compatible they would see a good amount of former Note 7 users.

40. looneyhouston

Posts: 48; Member since: Apr 10, 2014

They would of had my business if I didn't have to wait a month and a half to get a plus!! That is ridiculous! Well I guess it will be LG V20 for me.

36. iLovesarcasm

Posts: 589; Member since: Oct 20, 2014

If you're using Note 7, you should not downgrade to iPhone 7.

39. bucky

Posts: 3797; Member since: Sep 30, 2009

You mean the phone that had lag, memory, battery and exploding issues?

34. willywanta

Posts: 502; Member since: Jun 04, 2014

A galaxy note enthusiasts WILL NOT pick an iPhone. A phablet lovers MIGHT pick an iPhone.

31. reggiexp

Posts: 26; Member since: Sep 03, 2014

Na i dont hope so. Cause then people are dumb Like ow Samsung doesn't work. Then go to apple Like there is no htc or lg or honor or what ever other android brand.. Soo dumb this research... I don't think people are that dumb. To go straight to iPhone....

28. flavius22

Posts: 218; Member since: Aug 23, 2015

I have hope for ip8. But lets be realistic

23. tangbunna

Posts: 496; Member since: Sep 29, 2016

sorry no iphone 7 needed. it is not much better than last 2 years iphone.

57. nctx77

Posts: 2540; Member since: Sep 03, 2013

You can say that about the Note 7 dude.

58. nctx77

Posts: 2540; Member since: Sep 03, 2013

Also, you are really only talking from a design standpoint.

17. Whateverman

Posts: 3295; Member since: May 17, 2009

Samsung just saved the iPhone IMO. Let's be real, the ip7 sucks but it has a decent camera it seems. Other than the V20, Axon 7 and One Plus 3, I can't think of another phone worth checking out right now. Maybe the Pixel LX, but idk. Either way... Great job snatching defeat from the jaws of victory there Samsung! Hopefully, you can get the Note 8 right.

62. Stjuls

Posts: 10; Member since: Sep 25, 2016

Check out Huawei Mate 9.

10. Fona13A unregistered

So, do you guys hire your own analysts?

11. Acdc1a

Posts: 478; Member since: Jan 21, 2016

If one came up to me with this nonsense I'd find a new one.

16. NarutoKage14

Posts: 1354; Member since: Aug 31, 2016

I very high doubt that. Analysts, at least those worth their salt aren't cheap.

9. Acdc1a

Posts: 478; Member since: Jan 21, 2016

Apple is NOT picking up 50-70% of note users. This analyst needs their head examined. I figure Apple could pick up 10% pretty easily though.

13. 14545

Posts: 1835; Member since: Nov 22, 2011

Typically note buyers aren't switch hitters. I would be 100% shocked if they picked up even 1million buyers. These analysts are just fanboys who work on wall street and are generally wrong.

15. NarutoKage14

Posts: 1354; Member since: Aug 31, 2016

Considering there is no way to know how many they will eventually pick up we can only guesstimate.

27. bossman

Posts: 264; Member since: Jan 27, 2016

Also analyst may have forgotten that samsung has their s line. A lot of note 7 users might switch to that phone. And if Samsung completely tosses the Note 7, they might update their s line to act more like a note.

7. sissy246

Posts: 7129; Member since: Mar 04, 2015

If a person is a true android fan they will not go ios.

12. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Except Darkjedi, he's Apple or Samsung only.

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