Apple already seeing the rewards after Samsung permanently ends Note 7 production

As of late yesterday afternoon, Apple rival, Samsung, announced that they would be permanently ending Note 7 production due to safety risks. If you weren’t aware, the Korean company’s latest flagship has a tendency to begin smoking and then catching fire. While it could be seen as disappointing for some, Apple is already seeing the benefits of the announcement starting with increased share prices.

Investors wiped $18.8 billion off Samsung’s market value yesterday as shares closed down 8 percent. This would be their biggest daily percentage decline since 2008. Meanwhile, Apple stock closed on Monday up 1.9 percent at $116.05 per share, its highest value this year. Over the past three months Apple trading values have jumped up 20 percent. While a lot of that is a result of the iPhone 7 launch, having its rivals phones exploding also helped a bit.

“The Apple share price was doing nothing for over a year – it was considered ex-growth – now it’s possibly the only game in town when it comes to buying a mobile phone,” said Michelle McGrade, chief investment officer at TD Direct Investing.

This isn’t just good news for Apple stock. Right now the iPhone 7 is pretty much the only new flagship device from the big players on the market. While Google did just reveal their new “Google Pixel”, shipping dates aren’t expected until later next week (October 20 to be exact). Apple is set to release its Q4 earnings on the 25th of October, less than 2 weeks away from today. While Mac sales continue to decline, other product sales will hopefully ensure that the Apple trading value will remain high.