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Samsung To Lose 5-7 Million Galaxy Note 7 Customers To Apple Following "ExplosionGate"

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Samsung might see a mass migration of Galaxy Note 7 fans switching to rival Apple's iPhone 7


Paul Briden

10:19, 18 Oct 2016

Somewhere between 5-7million Samsung users could be switching to Apple’s iPhone 7 following the Galaxy Note 7 “explosiongate” fiasco, according to a report from KGI Securities analyst Ming-chi Kuo.

Kuo is well-known in the mobile industry for having his finger on the pulse when it comes to Apple’s iPhone; he’s well-connected with sources inside the Apple supply and production network in Asia, and publishes a lot of detailed reports which, more often than not, turn out to be accurate. Such reports are usually with regard to what specs and features forthcoming Apple devices will have – they’re mostly spot on – while other reports focus on Apple sales figures for new products.

So, being an Apple afficionado, could Kuo be subject to a bit of bias here? Well, possibly, but our feeling is probably not. Notably, Kuo’s most recent predictions for the iPhone 7 ahead of its launch were not particularly kind to Apple – in a nutshell, Kuo recognised that Apple would be reserving many of its major changes and innovations for the 2017 model and conclued that the iPhone 7 would not be interesting enough to attract a lot of attention from consumers.

Following Apple’s poor sales performance figures for 2016’s Q1 and Q2, Kuo also published reports saying he expected this performance dip to continue into 2017 after the release of the iPhone 7. So, Kuo is quite happy to point out when Apple isn’t doing well or is at some kind of disadvantage.

What he’s saying in his new report is that the discontinuation and recall of the Galaxy Note 7 appears to have left a bit of a gap in the market. Samsung fans have also been shaken somewhat and are left wondering if the Galaxy brand is all it’s cracked up to be.

Kuo believes that “average” consumers who would have picked up the Galaxy Note 7 may now be turning to the iPhone 7 and iPhone 7 Plus in large numbers, stating that they “have a tendency to like iOS and camera features, making the new iPhone an attractive sale.”

Before the Note 7 was discontinued, Samsung received around 12 million orders for the phablet; Kuo estimates as many as 50% of these unfulfilled orders will result in an iPhone sale instead, likely the iPhone 7 Plus model with a dual-camera.

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