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

Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple's iPhone Driver's License Feature Now Available in 11 U.S. States

Tuesday September 30, 2025 6:40 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. Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
maxresdefault

New iPad Pro With M5 Chip Leaked in Unboxing Video

Tuesday September 30, 2025 8:39 am PDT by
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom. The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak. Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
fcc vision pro leak

FCC Accidentally Leaks Apple's Next Vision Pro

Tuesday September 30, 2025 3:48 pm PDT by
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset. One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro. The FCC's uploads are transmission tests, SAR test reports, and...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
macbook pro prime day 2025

FCC Leaks Upcoming MacBook Pro and More

Tuesday September 30, 2025 1:58 pm PDT by
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch. The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
space black mbp

Here's Every New Apple Product That Leaked Yesterday

Wednesday October 1, 2025 8:27 am PDT by
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests. The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...

Top Rated Comments

n-evo Avatar
117 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
117 months ago
Meanwhile somewhere in California...

Attachment Image
Score: 66 Votes (Like | Disagree)
Devie Avatar
117 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
117 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
117 months ago
Tim Cook and Co. right now

Score: 34 Votes (Like | Disagree)
Mr Fusion Avatar
117 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)