Apple Inc. shares up after Samsung halts Note 7 production

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Apple Inc. (NASDAQ:AAPL) shares jumped 1.74 percent on Monday following the news that rival Samsung Electronics has postponed the production of its Galaxy Note 7 devices amid reports of fires in replaced handsets.

Samsung is going through the biggest crisis in its history and the latest fire incidents suggest that the South Korean tech giant has failed to fix the issue, which has already hurt its reputation to a great extent. AT&T Inc and Verizon Communications have also stopped the sale of Note 7 handsets after the overheating problem in the replacement phones.

The ongoing issues have become a headache for Samsung, but on the other hand, it could help the iPhone maker increase its share in the market.

S&P analyst Angelo Zino said in a note to clients that the Note 7 issues would help Apple boost its share by 1 percent in the global smartphone market. He also said that the iPhone maker could sell an extra 14-15 million devices in the September quarter, which could mean a surge of 7 percent from analysts’ earlier sales estimates.

Currently, Samsung is the biggest smartphone maker by volume, with roughly 23 percent of the market share, while Apple holds the second place with 12 percent share, according to research firm IDC.

Apple (NASDAQ:AAPL) shares are up nearly 2 percent in the pre-market on Tuesday. The 52-week range of the stock is $89.47-$123.82. AAPL’s market cap is $626.26 billion and P/E ratio of 13.55.

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