Apple’s (AAPL, Financial) new iPhone 7 has defied all criticism as the device is already in hot demand. So much so that Apple is struggling to meet demand. Out of all the problems that Apple could have had, failing to meet demand is probably the best thing that could have happened to the company. Apple should be able to cater to the demand soon, which is why the stock looks attractive right now.
An Amazing Promotion Offer by Domestic Carriers
All U.S. carriers have started offering consumers an iPhone 7 for free in exchange for their iPhone 6 or newer. Although carriers have proposed various offers whenever a new iPhone is launched, this offer is specifically belligerent.
The promotion basically proposes a $650 trade-in value for any iPhone 6 series model. Moving onward, the trade-in value promotion is based on a two year contract, so as to create lock-in. A consumer has to pay extra if they want to buy a 7 Plus with additional storage.
The carriers attempt to steal consumers from each other by proposing various types of offers, and every year the promotions are getting progressively more belligerent. As an outcome, Apple is the major beneficiary as carriers will have to pay no matter what.
Exploding Note 7 Is a Plus for Apple iPhone 7
Samsung (SSNLF, Financial) is the most significant competitor of Apple. The company has introduced some astonishing smartphones such as its Galaxy S series. A few months back, Samsung launched its new flagship models Galaxy S7 and Galaxy S7 Edge. Samsung got huge benefits from Galaxy S7 series as both the models successfully outperformed the smartphone market and managed to become the world’s top smartphones.
However, the company recently launched its new flagship device Galaxy Note 7, skipping its Note 6 model, to compete against Apple’s new iPhone 7, which has proved to be a thorn in its side. Shortly after the launch of Galaxy Note 7, it was found that some of the devices started exploding or catching fire. Not only will this affect Samsung’s performance this year, many users will likely shift to Apple’s iPhone 7 because of this.
Recently, one galaxy Note 7 exploded in a man’s pocket. Samsung is well aware of the problem and has declared an official recall worldwide. The company is putting in efforts to solve this issue, but this incident has badly affected the company’s image, which is surely a plus point for the Apple iPhone 7.
Conclusion
The trends point towards a very successful iPhone 7, which is great news for Apple investors as the company generates majority of its revenue from the flagship device. Although the stock enjoyed its best week in five years this month, I think it can easily move higher from current levels.
Disclosure: No Position
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