While Apple(AAPL) - Get Report devotees may not be happy with the loss of a headphone jack in the upcoming iPhone 7, at least they don't have to worry about the possibility of exploding batteries, like Samsung Galaxy Note 7 users.
Samsung's massive Galaxy Note 7 recall, which the company voluntarily initiated on Sept. 2, came just before Apple announced the iPhone 7 and iPhone 7+ last week, with the phones to start selling to the public on Sept. 16. Samsung's woes could add some sparkle to the new iPhone, which is more of an incremental improvement from prior models rather than a significant upgrade.
Shares of Apple gained $1.60, or 1.6%, to $104.73 on Monday afternoon, while shares of Samsung fell almost 8% in trading overseas on Monday.
The announcement of the iPhone 7 and 7 Plus was "lackluster," in the view of Gartner analyst Tuong Nguyen, who expressed skepticism that the problems with Samsung's flagship smart phone will lead to an outflowing of customers to Apple.
"We've chosen our battlegrounds already," Nguyen said, suggesting that U.S. users are mostly either in the Android an iOS camps. Shifting from one to the other is "at the least annoying" and involves relearning the quirks of a new platform and accounting for apps that have been bought or downloaded.
"I feel it's more likely that the Samsung incident will push people towards other Android makers like LGmoreso than towards Apple," Nguyen said. Shifts to a new platform could be more pronounced in emerging markets with burgeoning middle classes who may not have been able to afford iPhones before.
In its July report, Kantar found that 5% of Samsung users come from Apple while 14% of Apple's base came from Samsung. The dynamics in the global smartphone market could shift more broadly in the coming years, Kantar suggested, with Chinese smartphone makerHuawei passing Apple as the number 2 smartphone maker behind Samsung by 2020.
If the iPhone 7 is underwhelming, analysts have suggested that future updates of the iPhone will generate more excitement. Next year marks the 10th anniversary of the iPhone's introduction.
Steven Milunovich of UBS predicted in a Friday note that iPhones will see "modest growth" in fiscal year 2017, which starts roughly in the fourth calendar quarter of this year, and "potentially a big year" in fiscal year 2018.