That's a bummer. It will probably survive, but with a potentially weakened trunk. We have a lot of wild apples like that near my cabin.
If it's a dwarf rootstock it probably isn't a problem. If it's a full size rootstock it might fall over before it's time is due.
Personally, I hate ripping out trees and only do it as a last resort. I would rather regraft it, bridge graft it, graft a rootsucker, or top it before I resort to drastic measures.
That tree looks like it's healing fine. If it were my tree I would wait.