It seems the great chill that settled over Apple Inc. (NASDAQ:AAPL) stock within the last year may be clearing as Wall Street is happy to welcome the iPhone maker back into its portfolios. No hard feelings, right? After all, the sun is shining on the company again thanks to Samsung’s massive Galaxy Note 7 recall, and it seems the iPhone 7 cycle isn’t turning out to be as bad as some were worried it would be.

Apple Stock AAPL
Photo by Szilveszter Farkas

Apple (AAPL) stock on a big winning streak

Apple Inc. (NASDAQ:AAPL) stock continued rising on Wednesday, marking the seventh consecutive trading day of gains. The shares look to be on track for their longest winning streak in nearly two years. They’re also on track to test the 52-week high of $123.82, although they still remain in the $117 range. As of this writing, Apple Inc. (NASDAQ:AAPL) stock is up 1.19% at $117.68 per share, and it closed at its highest level in ten months on Tuesday.

Credit Suisse analyst Kulbinder Garcha said earlier this week that Samsung’s recall of the Note 7 will not only benefit Apple Inc. (NASDAQ:AAPL) in the short term but in the long term as well. He noted that the iPhone maker has an exceptionally high retention rate, even as high as 90% or possibly higher. As a result, if consumers switch to an iPhone 7 Plus instead of the Note 7 (or even an iPhone 7 instead of one of other Samsung’s other smartphones), they might never switch back.

Samsung, Apple (AAPL) thanks you

So just how much will Apple Inc. (NASDAQ:AAPL) benefit from Samsung’s major flub? Analysts who follow the iPhone maker have been quick to say that it will be the big winner, but they’re forgetting another entrant: Google. The Pixel and Pixel XL are larger than the iPhone 7 models, and thus, anyone who is an Android loyalist may be more likely to pick up a Pixel instead.

The big thing about the Note line (literally) is the large display, and Apple Inc. (NASDAQ:AAPL) continues to lag behind in this area. Yes, the display on the iPhone 7 Plus is a large 5.5 inches in size, but it’s still a bit smaller than the display on the Galaxy Note 7. Of course the Pixel XL is also 5.5 inches, so again, it would require a very small step down in size. However, at least they can stick with the Android operating system instead of re-purchasing all of their apps on iOS. Also neither phone offers a stylus anything like Samsung’s S-Pen.

Overall, analysts don’t believe this is the end for Samsung or for its smartphone line. In fact, Morgan Stanley analysts believe sales of the Galaxy S7 line have remained unaffected by the Note 7 fiasco. Of course the big question will come early next year, probably in March, when the Galaxy S8 comes out. Sales of that phone should give us a hint on just how serious the damage to Samsung’s brand is.

By then we should also have a clue about just how much Apple Inc. (NASDAQ:AAPL) is benefiting from the explosive Note 7. Certainly the action in Apple Inc. (NASDAQ:AAPL) stock suggests that investors expect a sizable benefit from Samsung’s misfortune.