It's a shame the Note 7 failed so miserably, having some kind of competition for the iPhone benefits consumers by keeping Apple on their toes.
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Apple and Huawei Will Benefit Most From Note 7's Failure, but Profit May Have Already 'Peaked Out'
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Let's assume the low end of the possible switchers. Then let's take only 60% of that. That's 3 million switchers. Let's assume 50% of those stay with the iPhone after their contract is up. That's 1.5 million incremental customers. I don't know what the lifetime profit stream is for a high end iPhone user, but I'd guess its probably north of $2,000 / user. So that means that even with conservative estimates, this is worth $3 billion to Apple over the lifetime of these users. At today's ridiculously low interest rates, that present values out to pretty close to $2.5 billion. Not a huge deal by Apple standards, but not chump change, either.
"Kuo estimates 5-7 million Note 7 users may switch to iPhone..."
Forget the actual note 7 users, a significant proportion of note 5 / note 6 users, when it comes time to upgrade, will switch to the iPhone 7 plus.
Maybe 30 million this year and 20 million next year.
Forget the actual note 7 users, a significant proportion of note 5 / note 6 users, when it comes time to upgrade, will switch to the iPhone 7 plus.
Maybe 30 million this year and 20 million next year.
That depends on what they want to do with their device, particularly a Samsung one.
Anyone used to a Galaxy device will immediately feel the pain of loss when switching to iPhone, regardless of how "slick" it is. It's in no small part the OS, but it's also hardware.
LOL! You clearly are not in IT. I'm not a dictator. IT is not a "god-like" position despite a lot of IT people acting like it. Thats the difference between a good IT person and an @$$hole IT person. IT is about customer service to your internal employees. They request whatever they want, and as long as their manager approves it financially, i order it and people love me!
This isn't just about the people who had bought a Note 7 in it's first month. It's also about all of the millions of Note 6 and Note 5 users who would have updated to the Note 7 in future. And Galaxy Phone users that fancied a Note when their contracts were up.
The Note was a significant chunk of Samsung's high end throughput, and Samsung has just lost it.
Not to mention the users who had no intention to buy the Note, but would have upgraded their Galaxy phones, but now wonder whether Samsung care about quality control.
Because lets face it, the original cock up was bad. But a relaunch that was no better show that this is a seriously flawed company.
You are talking about the US. Most of the rest of the world won't get that $100, but they DID get all of the bad publicity. The Samsung brand has been damaged in a very real way. Not saying it will last, because people forget quickly, but many people outside of the US only heard "Samsung phones are exploding", and that this was only confined to the Note 7 will probably not make a lot of difference. Anything with the title "Samsung" and a "7" in it will experience a dip in sales here.
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So, do you support both iOS AND Android internally? That is a pretty cool thing. Not many companies do that with internal phones. What company do you work at?
Being that our company don't buy premium headsets for people this would not even be an issue of us. People use whatever that comes with the phone.
I can only speak for myself, but if I had been a Note7 user that was forced to switch devices, the iPhone would not be it.
S7 Edge gives me (almost) everything but the pen, so I'd be going that route.
I understand this is an Apple forum, but people here need to understand that others chose Sammy's Note series over Apple's iPhone for a reason, and it's NOT because they're cheap.
Some of us see more value in the things Apple doesn't offer, that Sammy still does in the remaining devices on the market.
The iPhone and the Note7 were not equivalent devices. The iPhone and the S7 are closer. You choose based on what you, the individual, value more in the device's feature set.
S7 Edge gives me (almost) everything but the pen, so I'd be going that route.
I understand this is an Apple forum, but people here need to understand that others chose Sammy's Note series over Apple's iPhone for a reason, and it's NOT because they're cheap.
Some of us see more value in the things Apple doesn't offer, that Sammy still does in the remaining devices on the market.
The iPhone and the Note7 were not equivalent devices. The iPhone and the S7 are closer. You choose based on what you, the individual, value more in the device's feature set.
So, how did Kuo objectively determine that it is NOT going to last very long?
He didn't. He took a deep look into his crystal ball, just as I did.
You forgot to mention that your numbers are based on nothing but your personal opinion.
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I think you have a very limited understanding of what Kuo actually does to arrive at his predictions. If you think he sits at a desk and just invents numbers then you are terribly mistaken. That guys is extremely well connected to Apple and many companies in the Apple supply chain. His track record shows that he knows what he is talking about.
His informed estimation is worth a lot more than your guess.
If we are comparing anecdotal experience, a good many of my friends and colleagues have switched to Galaxies in the last year, having gotten bored of Apple's glacial iPhone iterations. They seem quite content with their decision too. I would have done the same if I wasn't so invested in the 
ecosystem and the Note 7 wasn't so mercurial.
ecosystem and the Note 7 wasn't so mercurial.
Interesting.
Most of my friends who had the Galaxy note, aren't even considering Apple as an option. Based on what they are doing, I would say the lesser known cheap Chinese options have an opportunity to grow their marketshare in these times. So far 3 of my friends have purchased $200 phones they intended on running until the Pixel comes out, yet, are now considering simply keeping them, and their money to wait and see what new devices come out for Android in 2017.
Most of my friends who had the Galaxy note, aren't even considering Apple as an option. Based on what they are doing, I would say the lesser known cheap Chinese options have an opportunity to grow their marketshare in these times. So far 3 of my friends have purchased $200 phones they intended on running until the Pixel comes out, yet, are now considering simply keeping them, and their money to wait and see what new devices come out for Android in 2017.
I am one of them. I've got a Pixel on order and have a free S7Edge thanks to AT&T and Samsung.
Most Note 7 owners that I've heard from on forums made out very well from Samsung's misfortune. We got to keep some expensive promotional items and deals and got refunds on accessories bought from carriers. And some places like Amazon and Best Buy extended return periods for accessories.
At least this has been the case in the US. It really did help have the carriers lead the way on this. They weren't perfect but it could have gone a lot worse for a lot more people. For the second recall, AT&T didn't even wait for Samsung, they made it up as they went along to ensure we left the table with no hard feelings and safer phones.
I still have an IPhone 6S Plus and an SE. But for the most part am shifting over to Android for cell phones, for now. I took an interest in the AI and VR experiences they offer. I still spend most of my time on my iPad mini, though--I still have love for Apple. I'm looking forward to the new IPads and getting back to artwork with the Apple Pencil. I had fun using the Note7 art programs while it lasted.
That's an idiotic comment. to make. Sales of the 7 have been brisk. 99% of people use the earbuds that Apple provides, and they provide lightening ones with the 7.
Troll somewhere else.....
You know I don't get the big deal with the headphone jack, but I respect you'll decision. To me, it is just about adjustment. Maybe some people need more time than others to adjust to the fact that the headphone jack is obsolete and is on its last days. It is not coming back and more tech manufacturers will follow suit eventually so you will have to deal with it sooner or later.
I can see a rippling effect of Apple's actions besides customer's disappointment, meaning pushing other tech manufactures to update their product line. So all the tech in your home, car, office, and mobile will follow suit since Apple is a "market leader".
Good for him to have such nice connections to Apple and it's supply chain.
But this article is about Samsung and the impact of the Note 7 disaster.
And if he has connections to Samsung, do they actually have working crystal balls and can tell him how long they are going to feel the impact?
I never said that my guess is worth more than his.
It's got a headphone port. Who cares if that port isn't a jack? Answer: nobody, but people on tech forums.
I think you perfectly understood what I was saying, but I will be more explicit in case you didn't. Kuo understands the sector very well he is well connected and knows what the supply chain is doing. He has access to information about manufacturing volumes and behaviour in both the Apple AND Samsung supply chains. In order to be a good analyst, he also needs to understand the competition well.
Crystal balls? They don't have or use them anywhere. But this is a very well defined and mature market, with lots of consumer data that is quite well understood and can be simulated equally well, due to its repetitive and seasonal nature in many countries. So yes, Kuo has access to data that enables him to put a reasonably good number on Samsung losses and Apple profits.
You said the following:
. You made a guess, he made an informed estimation. Different things entirely.
I'm one of those. My wife and I purchased the Note 7 on launch day. Really an awesome device IMO. The curved screen makes it very comfortable to hold and the "home" button make it much better to me when compared to the other Android phones. The OS is laggy though... Very frustrating to have a phone that stutters here and there. We're back with a 7 and 7+