Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Apple Shares Rise as Samsung Kills the Galaxy Note 7 Entirely

Tuesday, October 11, 2016 4:33
% of readers think this story is Fact. Add your two cents.

Mobile devicesTech giant Apple Inc. (NASDAQ:AAPL) was on the rise this morning, as chief smartphone competitor Samsung announced it would discontinue production and sales of its fire-prone Galaxy Note 7.

The move puts an end to a several month-long saga that included several reports of phone fires, device bans from airlines, and an ill-fated recall and exchange program. From the WSJ:

Samsung said in a filing with South Korean regulators that it would permanently cease production and sales of the device, following a string of reported incidents in which supposedly safe replacements of the premium smartphone overheated and in some cases caught fire.

“Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7,” the company said.

Korean-traded Samsung shares plunged 8% on the news, wiping out around $17 billion worth of the electronics giant’s market cap. Samsung advised all Note 7 users to turn off their phones permanently, and will apparently reimburse users at a heavy cost:

Daniel Kim, a Seoul-based analyst for Macquarie, estimated that the potential losses to Samsung could reach 3.1 trillion Korean won ($2.8 billion) for the last three months of the year, which would be enough to wipe out the entire mobile division’s operating profits for the fourth quarter.

Analysts are speculating the company could scrap the Note smartphone series entirely, and fall back on its Galaxy series, which outsells Note series phones by around three to one.

The big winner in Samsung’s debacle is Apple, and the timing couldn’t have been better. AAPL’s latest device, the iPhone 7, was released last month with heavy pre-order volume, and Samsung’s Note issues are likely driving many former Samsung users over to Apple.


Apple shares rose $1.32 (+1.14%) to $117.37 in premarket trading Tuesday. Year-to-date, AAPL has gained 10.25%, versus a 6.03% rise in the benchmark S&P 500 during the same time period.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.