Apple stock rises as Samsung bungles its exploding smartphone recall

Apple stock rose to $116.23 in mid-day trading as its main rival for the high-end smartphone market, Samsung, continues to reel from reports that its latest device continues to have issues with its battery.

The $2.17, or $1.90% rise, comes after Apple had a strong weekend in after-hours trading.

Apple stock is up nearly 20% over the past three months and is now trading at the same price it was last December.

The strong day for Apple appears to be related to Samsung’s continuing issues with its Galaxy Note 7 smartphone. Major American wireless carriers, including AT&T and Verizon, have halted sales of the Galaxy Note 7, and are allowing customers to exchange Note 7s that have already been sold for another device — including Apple’s iPhone.

Drexel Hamilton analysts also gave Apple stock a “buy” rating and a target price of $185 on Monday.

What is still unknown is how well Apple’s latest devices, the iPhone 7 and iPhone 7 Plus, are selling.

Some of Apple’s supply chain partners have signalled they are having a good quarter, lending support to the bull case for Apple.

But other reports have been more bearish on iPhone sales, and KGI Securities analyst Ming-Chi Kuo believes that Apple will ship fewer iPhone 7 units in 2016 than it did iPhone 6S units last year.

Apple will reveal iPhone sales numbers as part of the company’s quarterly earnings on Tuesday, October 25.

Here’s the chart:

NOW WATCH: Google just unveiled the Pixel — its first smartphone

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.