Ticonderoga on Tech Supply Chain: China's Mobile Internet Ramp Marches Ahead in March

Ticonderoga on Tech Supply Chain: China's Mobile Internet Ramp Marches Ahead in March by Brian White

Analyst, Brian White, said, "China's Wireless Subscribers Reach 876 million in March - This morning, the last March subscriber data from the China-based carriers were released. The March subscriber reports from China Unicom (NYSE: CHU)(Not-Rated), China Telecom (NYSE: CHA)(NR) and China Mobile (NYSE: CHL)(NR) have been staggered as these companies reported March quarter earnings. Total subscribers (wireless, broadband and wireline) rose 1.1% M/M, or up 14.30 million in March (vs. up 0.9% in February, or up 10.6 million) to 1.26 billion, while total wireless subscribers increased by 1.5% M/M, or 12.65 million (vs. up 1.2% M/M and up 9.99 million in February) to approximately 876 million. China enjoys the largest wireless subscriber base in the world, and we believe that the country's mobile Internet ramp provides Apple (Nasdaq: AAPL)(Buy) with a significant incremental growth driver. As such, we believe that Apple could be one of the biggest beneficiaries of China's mobile Internet buildout over the next decade."

""White" iPhone 4 Sold Out in Beijing, While Hong Kong Took 1 Hour. Our checks today indicate that the "white" iPhone 4 was sold out on launch day in Beijing, while Hong Kong sold out in one hour according Elegenttech.com..."

"3G Subscribers Grow by 11% M/M at Chinese Service Providers - The 3G wireless ramp continued to grow at a steady pace in 2011 with 3G growth in the month of March, as 3G subscribers rose 10.6% M/M, or 5.91 million to 61.9 million. As such, Chinese service providers experienced a growth of 32% Q/Q in 3G wireless subscribers in the March quarter. We now believe that Chinese 3G subscribers could reach 110-120 million in 2011 versus our previous expectations of over 100 million."

"China Mobile Leads the 3G Ramp in China - In March, China Mobile grew 3G (TD-SCDMA) subscribers by 10% M/M, or 2.45 million, to 27 million. Total wireless subscribers increased 1% M/M, or 5.91 million, to 600.8 million. For China Unicom, 3G subscribers (WCDMA) rose 11.1% M/M, or 1.86 million, to 18.5 million, while wireless subscribers increased by 2.9 million, or 1.7% M/M, to 174.5 million, and total subscribers increased by 1.1% M/M, or 3.55 million, to 320.9 million. Finally, China Telecom grew its total subscriber base by 4.84 million, or 1.4% M/M, to 340.5 million, with wireless subscribers (CDMA 2000) breaching the 100 million subscribers mark, rising by 3.8 million (up 3.9% M/M) to 100.3 million, local access down 0.41 million (down 0.2% M/M) and broadband up 1.45 million (up 2.2% M/M). 3G subscribers grew by 10.9%, or 1.61 million, to 16.37 million."

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