Apple stock hits highest since December on Samsung Note 7 fire crisis
By Noel Randewich
SAN FRANCISCO (Reuters) - Apple Inc's (AAPL.O: Quote) stock on Monday jumped 2.3 percent, reaching a high not seen since December, after rival Samsung Electronics Co Ltd (005930.KS: Quote) suspended production of its flagship Galaxy Note 7 smartphones following reports of fires in replacement devices.
Fires in the smartphones that were meant to replace devices that had been recalled because of their propensity to explode could be a disaster for Samsung and a potential boon to Apple.
Apple's stock was up $2.66 at $116.72 in afternoon trading and was the largest contributor to gains on the S&P 500. Earlier, Samsung's stock dipped 1.5 percent.
Samsung's ongoing problems suggested the world's largest smartphone maker has failed to fix a problem that has already damaged its brand and threatened to derail a recovery in its mobile business.
Best Buy Co Inc (BBY.N: Quote) will no longer sell the Note 7 and said customers could return their smartphones or exchange them for a different device.
"We believe the Note 7's ongoing issues could help market share shifts for Apple," Credit Suisse analyst Kulbinder Garcha said in a note to clients on Monday. He estimated that a 5 percent gain in high-end smartphone market share would increase Apple's earnings per share by as much as 7 percent.
Apple's stock has rallied 13 percent since mid-September on optimism about demand for the recently launched iPhone 7. Continued...