China Wireless Carriers Mixed Following Apple (AAPL) CEO Cook's Overseas Visit
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Price: $333.74 +0.14%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
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Following reports of Apple (Nasdaq: AAPL) CEO Tim Cook taking a trip to China and holding "great meetings" with officials, shares of Chinese telecom companies are mixed.
Apple's current provider, China Unicom (NYSE: CHU) is lower, China Telecom (NYSE: CHA) is flat, and China Mobile (NYSE: CHL) is up nearly 1 percent.
Cook said he expects Apple will make a "greater investment" in China. With Apple currently offering its iPhone on jut one carrier, many expect the next move to diversify onto another provider.
China Mobile is the world's largest wireless provider, with 655 million subs. Of the total, only a small portion use its 3G network, though the addition of 20 million to 25 million more targets would be appealing to any mobile device OEM, regardless of the market.
One drawback is China Mobile's 3G network, which is TD-SCDMA. Apple's iPhone is programmed simply for CDMA currently, though, again, an updated version is expected soon. Despite no direct offering for Apple's iPhone on China Mobile's network, the company reported having 15 million users on its 2G and Wi-Fi networks.
China Telecom currently has 41.2 million 3G subs, possibly making it a more-attractive choice for Apple over China Mobile, amid smaller total subs numbers.
As a refresher, China Unicom boasts 45.9 million 3G subs.
Shares of Apple are indicated higher Monday morning.
Apple's current provider, China Unicom (NYSE: CHU) is lower, China Telecom (NYSE: CHA) is flat, and China Mobile (NYSE: CHL) is up nearly 1 percent.
Cook said he expects Apple will make a "greater investment" in China. With Apple currently offering its iPhone on jut one carrier, many expect the next move to diversify onto another provider.
China Mobile is the world's largest wireless provider, with 655 million subs. Of the total, only a small portion use its 3G network, though the addition of 20 million to 25 million more targets would be appealing to any mobile device OEM, regardless of the market.
One drawback is China Mobile's 3G network, which is TD-SCDMA. Apple's iPhone is programmed simply for CDMA currently, though, again, an updated version is expected soon. Despite no direct offering for Apple's iPhone on China Mobile's network, the company reported having 15 million users on its 2G and Wi-Fi networks.
China Telecom currently has 41.2 million 3G subs, possibly making it a more-attractive choice for Apple over China Mobile, amid smaller total subs numbers.
As a refresher, China Unicom boasts 45.9 million 3G subs.
Shares of Apple are indicated higher Monday morning.
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