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Apple Might Get 5 To 7 Million New iPhone 7 Users Thanks To Samsung Galaxy Note 7 Cancellation, KGI Analyst Says

18 October 2016, 11:46 pm EDT By Carl Velasco Tech Times
Samsung's cancellation of the Galaxy Note 7 might be good news for Apple. The company is expected to reap 5 to 7 million iPhone 7 sales from Samsung's Note 7 fallout, according to a KGI Securities analyst.   ( Spencer Platt | Getty Images )

Apple is expected to reap sales of its flagship smartphone, the iPhone 7, as a sort of side effect of Samsung's Galaxy Note 7 fiasco. Samsung officially ended production of Note 7 devices a week ago, the unfortunate outcome of a very messy disaster.

Now that the Galaxy Note 7 is officially out of the market, an analyst is predicting that iPhone 7 sales could balloon considerably as consumers seek for a respectable alternative that isn't laden with life-threatening issues. Affected customers inconvenienced by the Note 7 may exchange their device for another Samsung phone, or they have the option to receive a refund and choose a different phone altogether.

It's possible that consumer panic may translate for upped sales for Apple's iPhone 7, released early September. In a recent report, Ming-Chi Kuo, a KGI Securities analyst, said that he expects 5 to 7 million Note 7 orders will turn into iPhone 7 sales, possibly even iPhone 7 Plus accounting for its main selling point: dual cameras. According to KGI, waning consumer loyalty for the Samsung brand is good news for Apple, as the debacle has left people looking for another formidable manufacturer to convert to. 9to5Mac first reported Kuo's forecast.

In the report, it's also explained that the intersection of users harbors indispensable loyalty to no particular brand, so convincing them to jump to iOS won't be a tall order. Keep in mind that previous Note 7 users may possibly have prior experience with an Apple product, easing the transition. Of course all of this is in nature highly speculative; there's actually no surefire way to predict market behavior. Some Note 7 users are even adamant on returning their device for an exchange or a refund. Bad news for them if they'll be flying on a plane in the near future.

Apple is likely gearing up for this huge window of opportunity. Time is of the essence for the company, and it'll most likely want those uncertain consumers to withdraw from other phone manufacturers and instead come to them and avail of its flagship device. Apple is positioned to pull 50 percent of 12 million Note 7 orders into its turf, according to KGI. The rest will likely turn to other manufacturers like Huawei. Google's even proving to be a worthy alternative with its premium offerings in the Google Pixel and Google Pixel XL.

If the forecast proves accurate, Apple should expect the eventual uptick in Q4 of 2016 and early 2017. On Oct. 25, Apple's set to report its earnings to investors, including initial sales of iPhone 7 and iPhone 7 Plus units. It's too early for the company to accumulate sales out of Note 7's fallout, but it's more than likely that it will start marketing its appeal to undecided consumers.

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