Apple iPhone 7 To Benefit From Samsung Galaxy Note7 Disaster

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By Douglas A. McIntyre Updated Published
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Apple iPhone 7 To Benefit From Samsung Galaxy Note7 Disaster

© courtesy of Samsung Electronics Co. Ltd.

Apple’s iPhone 7 was a gamble by the company that a phone slightly better than the iPhone 6 would sell well. The jury will be out for weeks. The collapse of sales of the Samsung Galaxy Note7, and a warning that consumers should not use it at all gives Apple (NASDAQ: AAPL) a huge gift as it launches a new flagship product

The Galaxy Note7 is not direct competition with the iPhone 7. That falls to the Samsung Galaxy S7. However, Samsung’s impressive halo has been damaged, and that will undermine sales of all its products. The collapse of one product causes faith in related products to diminish. Some non-diesel VW sales have been hurt by the problems with its diesel line. The public does not always make detailed evaluations of brands and their products

[nativounit]

Consider how the media can make enhance the confusion. The LA Times wrote:

Samsung Electronics on Saturday urged consumers to stop using Galaxy Note 7 smartphones immediately and exchange them as soon as possible as more reports of the phones catching fire emerged even after the company’s global recall.

That may cause readers to view the Galaxy Note7 as a smartphone phablet.

The confusion is wider. According to Tech Radar

on August 9

Look out for upcoming devices we know about such as the Samsung Galaxy Note 7 or the ZTE Axon 7 that may feature in this list soon. Plus don’t forget all the rumors of the iPhone 7 Plus and the new Nexus phablet expected to be called the Nexus 7P.

It is more than confusing. But, it helps Apple, which needs a hit with the iPhone 7. Otherwise it will be the halo of Apple brand tarnished as well.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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