Exploding Galaxy Phones and Shipment Halt a 'Lucky Break' for Apple (AAPL) Ahead of iPhone 7 Launch - Drexel Hamilton
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Drexel Hamilton analyst Brian White views news that Samsung is halting shipments of the new Galaxy Note 7 due to reports the device was catching fire and exploding is a lucky break for Apple (NASDAQ: AAPL) ahead of the iPhone 7 launch.
"In our view, the timing could not have been more propitious for Apple with the iPhone 7/7 Plus expected to be unveiled on September 7 at the company's Special Event," White said.
The analyst said with market expectations for well over 10 million Galaxy Note 7 units in H2:2016, they believe this issue could bode well for Apple and specifically the iPhone 7 Plus with dual camera that is expected to be unveiled next week. · Furthermore, they believe the images and videos of burning Galaxy Note 7 devices in the media will cause some damage to the Samsung brand, further bolstering Apple's brand.
With "gloom and doom" around Apple over the past several months, they believe sentiment will begin to change with the launch of the iPhone 7 and into the iPhone 8 in 2017.
Apple remains the firm's top pick for H2:2016 and he reiterated a Buy rating and price target of $185.00
Shares of Apple closed at $106.73 yesterday.
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