How Samsung Is Helping Apple (AAPL) Shares Rise

Samsung Electronics Co. Ltd has been having a rough few weeks with their exploding phone situation. Their rough time is helping shares of Apple though. The stock hit its highest price in 2016 on Tuesday. According to one analyst said Apple could sell millions of iPhones because of Samsung’s dilemma.

It was on Monday that Samsung 005930 announced that any Galaxy Note 7 devices that have been sold should be turned off, and said it was halting sales of the smartphone after replacements suffered a similar overheating issue to the original devices.

Samsung will not produce the Note 7 smartphone any longer, after several more phones caught fire over the weekend. The company announced on Tuesday morning that it has decided to stop production altogether “for the benefit of consumers’ safety.”

Before Samsung’s announcement to halt sales, CFRA Research analyst Angelo Zino wrote in a note to clients that he expects the Note 7 issues to help drive some Android users over to iOS, which he estimates could help increase Apple’s share of the global smartphone market by 1%.

According to Zino, the 1% share gain would help Apple sell an additional 14 million to 15 million units during the September quarter, which would mean a 7% increase from the analyst’s previous sales forecast.

According to FactSet, analysts on average are calling for September-quarter iPhone sales of 45 million, down from 48 million a year ago.

Samsung has said it was sending fireproof packaging and gloves to customers who bought the Galaxy Note 7 phone on its website, so they could return the devices.

The phone maker said in a statement on Wednesday, “A device containing a lithium ion battery subject to a recall must be shipped in accordance with government regulations, and these special boxes are required by government regulations.”

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.