Apple is reportedly increasing the component orders for the iPhone 7 in response to the Samsung Galaxy Note7 recall.
Samsung announced a global recall of the Samsung Galaxy Note 7 because of exploding batteries. There are only 24 affected in a million, but Samsung has to recall all 1.5 million sold Note 7 devices to make sure all bad batteries are pulled out of the market.
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Large scale recalls like in the Samsung case are bad for the brand's reputation. Some customers even might leave the brand. Apple reportedly prepares for a big walkout of Samsung customers. Apple has increased iPhone 7 component orders by 10% according to sources from the iPhone supply chain in Taiwan reports Digitimes.
The source is not specifically mentions what caused Apple to increase the orders. It might just be a coincident that Apple increases orders just after the Samsung recall. Apple might just become more confident about the replacement demand for new iPhones from existing iPhone users.
Samsung is exchanging the Note 7 for customers starting next week in the United States. Samsung gives out $25 gift cards to customers for the trouble. If the exchange program works smoothly, I don't believe many customers will switch to Apple.
In related news, Samsung's partner Oculus warns Gear VR owners not to use the virtual reality headset with the Note7 until its replaced. You definitely don't want a phone explode strapped to your face.
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Apple will unveil the iPhone 7 on Wednesday at 10am PDT. The Apple iPhone event will be streamed live online.