Apple Shares Hit New High for 2016 as Samsung Considers Scrapping Note 7 [Update: Note 7 Officially Discontinued]

Samsung is likely to permanently stop selling its Galaxy Note 7 smartphones following the latest halt of sales and production, according to reports on Tuesday.

Samsung halted sales and paused production of the Note 7 smartphones in the last 24 hours and told owners to power down the devices while it investigates reports of fires, fueling expectations the tech giant will scrap the flagship device.

galaxy-note7
The BBC this morning referred to "unnamed sources" cited by South Korean Hankyoreh newspaper claiming that Samsung would can the device and seek to make up for lost Note 7 sales through its Galaxy S7 models as well as the Note 5, which was the predecessor for the Note 7.

Separately, Reuters reported Samsung is now considering permanently halting sales of its flagship smartphones as an option, "according to a source familiar with the matter". The person declined to be identified because they were not authorized to speak publicly.

Samsung did not immediately comment on the BBC report, but told Reuters no final decision had been made. Meanwhile, the South Korean finance minister said it would hurt the country's exports if the device is scrapped altogether.
 
"Right now we can't tell what the impact will be in the long term. It's up to the company and the government cannot interfere," Yoo Il-ho said. "But if they do scrap the model, it will have a negative impact on exports." 

According to analysts, the Note 7 recall could cost Samsung as many as 19 million lost unit sales, or as much as $17 billion, if it permanently stops selling the smartphone for a second time, following multiple reports of replacement handsets setting on fire. 

"This has probably killed the Note 7 brand name," said Edward Snyder, managing director of Charter Equity Research. "By the time they fix the problem they have to go through recertification and re-qualification and by the time that happens, they're going up against the [Galaxy] S8 launch." 

Investors wiped $18.8 billion off Samsung's market value on Tuesday as its shares closed down 8 percent, 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. Apple is now trading at levels not seen since December 2015 and has jumped 20 percent over the past three months, partly on renewed optimism over iPhone 7 sales, but also in response to its arch rival's woes.

"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.

However, with last week's launch of its own-branded Pixel smartphones, Google is also poised to benefit.

"From Google's perspective the timing couldn't have worked out better for them in that they're essentially trying to compete now in the premium sector against the likes of Apple and Samsung," said Creative Strategies analyst Ben Bajarin, speaking to the BBC.

"Now with this issue around Samsung and some questions and stigma around the brand, the product itself, could certainly help Google out. But I think Apple's definitely the biggest beneficiary from here. If there were people on the fence about whether or not to get an iPhone 7 Plus, for example, which is kind of in the same size range as the Note 7, that was one of the things that we think is benefitting Apple the most, just because that's a competitive product and it's an established brand," Mr Bajarin added. 

The news comes on the same day Apple and Samsung are set to face off in the Supreme Court over a long-running smartphone design patent case.

Update: The Wall Street Journal has reported that Samsung has officially axed the Note 7, while Samsung has told TechCrunch: "We can confirm the report that Samsung has permanently discontinued the production of Galaxy Note 7."

Popular Stories

iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
macbook pro blue green

M5 MacBook Pro No Longer Coming in 2025

Thursday July 10, 2025 12:38 pm PDT by
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026. Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
Foldable iPhone 2023 Feature 1

Foldable iPhone Display Production Begins Ahead of Launch Next Year

Wednesday July 9, 2025 10:59 pm PDT by
Production of foldable OLED displays for Apple's first foldable iPhone have begun ahead of its expected launch next year, Korea's ETNews reports. The first foldable iPhone's displays are being produced by Samsung Display, who are establishing a production line dedicated to the upcoming Apple device its A3 factory in Asan, Chungcheongnam-do. The production line will make displays exclusively...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...

Top Rated Comments

n-evo Avatar
114 months ago
Amusing how Samsung managed to single-handedly destroy one of their phone lineups just because they wanted to beat the iPhone 7 launch. All they did was play into Apple hands.
Score: 87 Votes (Like | Disagree)
iamthealchemist Avatar
114 months ago
Meanwhile somewhere in California...

Attachment Image
Score: 66 Votes (Like | Disagree)
Devie Avatar
114 months ago
wow, never good seeing someone go down like this.

but hey, since they're down *kick*
Score: 42 Votes (Like | Disagree)
tentales Avatar
114 months ago
Schadenfreude is bad karma. You haters should hope that Samsung SDI (the battery manufacturer in question) did not produce exploding Li-Ion batteries for Apple's iPhone. They're on Apple's supplier list.
Score: 35 Votes (Like | Disagree)
Radon87000 Avatar
114 months ago
Tim Cook and Co. right now

Score: 34 Votes (Like | Disagree)
Mr Fusion Avatar
114 months ago
Nice bait thread title. Couldn't leave it at Apple's finances, had to throw Samsung's name in there. How many added clicks did that net you?

In a month where Apple's dying Mac lineup was supposed to be revamped, MacRumors has gotten to the bottom of the story... By posting article after article of incremental beta updates as front-page news. Well done.

I guess I'm missing the big picture. I visit websites like this because Apple products interest me. But all I get from this site now are shareholder results and software developer ads. Thanks.
Score: 20 Votes (Like | Disagree)