As Samsung continues reeling over the fallout from its exploding Galaxy Note7, conventional wisdom is that this is a golden opportunity for rival Apple.With Apple rolling out the new iPhone 7 and iPhone 7 Plus last month — following a year of declining sales — the absence of the Note7 in the marketplace and the negative impact of recent events on Samsung s brand and reputation should be opportune.
Or so one might imagine.But it turns out Apple itself is not really in a position to take advantage of its rival s problems.
In Apple s earnings call yesterday, executives explained that supply for the two new phones remains heavily constrained.
That is, the company can t make enough devices to meet demand.With Apple forecasting a slight year-over-year increase in sales for the current quarter, analysts have been trying to understand exactly what would drive that growth.
And so several asked about the impact of the Note7 debacle.In response, Apple CFO Luca Maestri said while the company feels good about the results of the new phones, it is still limited by the number of devices it can make, and it will be for some time.
But maybe the most important element of this is the fact that we are supply-constrained on 7 and 7 Plus, Maestri said.