Is Apple Stock at Risk of Fire?
In case you didn’t get your smartphone explosion fix when the “Samsung Galaxy Note 7” was in circulation, have no fear: it appears that Apple Inc. (NASDAQ:AAPL) refuses to be outdone by its competitor, and is now offering its very own spontaneous-combustion feature, under the label “thermal event.”
Apple stock, however, remained relatively unchanged in trading on Wednesday.
Joking aside, there have been eight reported exploding “iPhones” from September 1 to November 30, as reported by the Shanghai Consumer Council; hardly on the same level as the Samsung Galaxy Note 7. At least, not yet. Much like how Apple stock remains cool, the fires have yet to spread.
Apple, for its part, told Quartz that it had analyzed some “thermal units” and found they “have clearly shown that external physical damage happened to them which led to the thermal event.” It insisted it has “found no cause for concern with these products.” (Source: “China says Apple has an exploding iPhone problem,” Quartz, December 7, 2016.)
This is not the first time that Apple has come into heated disagreement with a Chinese agency. Take November, when the China Consumers Association, a consumer watchdog, demanded that Apple answer for consumers reporting that their “iPhone 6” and “iPhone 6S” devices were intermittently shutting down. Apple replied by claiming that only a very small number of products had been affected.
The Shanghai Consumer Council in a report linked Apple stock device complaints with the fallout from the Note 7 troubles, as complaints levied against the American producer doubled from 2015, a large portion of those coming after the Galaxy Note 7 recall in October-November. (Source: “Apple Says the iPhones Catching Fire in China Are Probably Not Its Fault,” Fortune, December 7, 2016.)
And these on-fire iPhones are hardly Apple stock’s worst trouble in the Chinese market. The tech giant has had declining sales in the country for the past three quarters as domestic smartphone competitors offer high-end products at a lower price point.
“I still worry about the iPhone in case there is indeed a problem, but it’s not investigated,” said Mr. Liu, a 21-year-old student in Beijing to Reuters.
“The news did make me change my Apple habits. For example, I don’t dare play with the phone in bed and if it heats up I quickly throw it aside.” (Source: Ibid.)