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Report: 5-7 Million Galaxy Note 7 Users Expected to Switch to iPhone 7/7 Plus

Report: 5-7 Million Galaxy Note 7 Users Expected to Switch to iPhone 7/7 Plus

While Samsung hopes Galaxy Note 7 users will switch to one of their other handsets, KGI Securities analyst Ming-Chi Kuo believes Apple and Huawei will see the biggest benefit. The two companies will attract users looking for dual camera support. That, and less likelihood of fires… (OK, we added that one ourselves.)

Report: 5-7 Million Galaxy Note 7 Users Expected to Switch to iPhone 7/7 Plus

Although Apple will definitely benefit from users moving from the doomed Note 7,  Kuo says it is likely those benefits are “largely reflected in raised forecasts,” and not so much in actual shipping numbers. Kuo estimates of the original 12-14 million units Samsung expected to ship in 2016 before the exploding battery fiasco raised its ugly head, 5-7 million of those users will switch to the iPhone 7. Most likely the iPhone 7 Plus.

Consumers that have switched from Note 7 to iPhone after the recall and halted production can be identified as having the following characteristics: (1) no trust in the Samsung brand anymore; (2) could be former iOS users; (3) like dual camera feature; and (4) like the subsidy packages of telecom operators (iPhone 7 and 7 Plus were the most promoted flagship models in September).

The analyst believes the benefits of the switchers may have “peaked out” already for Apple. He estimates it will take between 3 to 5 weeks for Apple to accommodate the additional iPhone 7 orders, if the Cupertino firm doesn’t expand production capacity of the 7 Plus models.

Kuo believes Huawei will also benefit from the Note 7’s removal from the market, especially in China and Europe. The firm is readying a fall launch of its Mate 9 handset in the fall, and is shaping up to be the best bet for Note 7 users who can’t bring themselves to buy another Samsung device, but want to remain on the Android platform.

Report: 5-7 Million Galaxy Note 7 Users Expected to Switch to iPhone 7/7 Plus

Kuo says Samsung will strive not to rush to production on its upcoming Galaxy S8, which will enter production in the first quarter of 2017, making greater efforts with quality control. Kuo also believes Samsung’s 10 nanometer chip production process is facing teething pains, so Samsung will also want to make sure the bugs are worked out there before gearing up mass production of the new handsets.

Production of the Samsung Galaxy Note 7 was ended following a number of reports of the device’s batteries exploding and catching fire. A recall led to replacement devices being placed into the hands of customers. However, the replacement units also had issues that caused the same safety hazard. This led to a final recall, and the total shutdown of production of the Note 7. The fiasco is expected to cost Samsung billions in mobile business profit for this quarter.

(Via MacRumors)