As the Samsung faulty battery fiasco takes its toll on the Korean company, Apple is reaping the benefits. Apple Inc's stock on Monday climbed by 2.3 percent. This is the highest the company has recorded since December last year.

Samsung has suspended the production of the Galaxy Note 7 after replacement units of the smartphone that it sent out were reported to have the same exploding battery problem.

Apple Inc's (AAPL.O) stock was up $2.66 at $116.72 by Monday afternoon trading and was the largest contributor to gains on the S&P 500. Earlier in the day, Samsung's stock dropped by 1.5 percent.

This current scenario has nothing but grave implications for the world's largest smartphone manufacturer, Samsung. Samsung's failure to fix the Note 7 battery problem is a threat to the brand and a boon for its competitors.

"We recognize that carrier partners have stopped sales and exchanges of the Galaxy Note7 in response to reports of heat damage issues, and we respect their decision," Samsung said in a statement to CNBC. "We are working diligently with authorities and third party experts and will share findings when we have completed the investigation. Even though there are a limited number of reports, we want to reassure customers that we are taking every report seriously." 

Apple's stock has gained 13 percent since mid-September. Market data and analysis by FactSet estimates that Apple would sell 45 million iPhones in the September quarter - down from 48 million a year ago but up from 39 million in 2014.