Apple shares rise as Samsung's Galaxy Note 7 woes continue

Apple shares rise as Samsung's Galaxy Note 7 woes continue
Credit: REUTERS/Mike Segar

At the end of the trading day on Monday, shares of Apple were up nearly 1.75 percent before ultimately closing at $116.05 per share. All told, Apple stock is now trading at levels not seen since December of 2015.

Part of the recent upswing in Apple shares can, of course, be attributed to better than anticipated iPhone 7 demand. Though the iPhone 7 was initially pegged as a lackluster upgrade, consumers on the whole appear to be impressed with the device's new camera and blazing fast hardware. Pre-orders for the iPhone 7 set new records at both Sprint and T-Mobile.

Additionally, analyst reports in recent weeks have suggested that many iPhone buyers are opting for the more margin-friendly iPhone 7 Plus, further padding Apple's bottom line in the process.

That said, it's impossible to ignore the public relations nightmare currently embroiling Samsung as a contributing factor. Over the past few weeks, there were scores of reports surrounding Galaxy Note 7 devices catching fire and exploding, ultimately prompting Samsung to initiate a worldwide recall. Over the weekend, however, word emerged that even Samsung's replacement Note 7 devices were exploding, a situation that prompted Samsung to officially halt all Note 7 sales and replacement programs.

Samsung's press release reads:

We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note 7. Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while the investigation is taking place.

We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation. Consumers with either an original Galaxy Note 7 or replacement Galaxy Note7 device should power down and stop using the device and take advantage of the remedies available.

Consequently, Apple shares may be buoyed even further as frustrated Note 7 owners may opt to try out the iPhone 7 Plus instead of trying their luck again with Samsung.

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