Just yesterday, I shared in my blog that replacement Galaxy Note 7 Phones were exploding. That has led to a rise in Apple share as folks are expected to switch from Samsung to Apple. Well just this morning Samsung has announced that they are permanetly discontinuing the Galaxy Note 7. Will Samsung customers stay loyal and switch to another Samsung phone or does it permanently hurt their smartphone business?
The Wall Street Journal sees Samsung losing a large sum of money from this move, "As the recall has gone from bad to worse for the world’s largest
manufacturer of smartphones by shipments and sales, stock analysts have
begun tallying up the likely financial hit for Samsung." This is their Tylenol moment. It is unfortunate that their fast move to issue recalls did not solve their problem. But how they continue to respond from this setback will determine the future financial health of this electronic giant.
For Apple, it is good news for now. iPhone production should increase to assure supply meets demand and revenues for this quarter could likely "explode". Sorry for the bad pun. As to the stock market, shares this morning BEFORE the bell are already up almost $2.
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