Apple (AAPL) Launches iPhone 5 in China Today; Should Anyone Care?
Last week, Nokia (NYSE: NOK) and China Mobile (NYSE: CHL) entered a deal for Nokia to bring its Lumia line to China. Notably, China Mobile is the world's number one wireless carrier by a long shot, boasting 704 million subs with 79 million on its 3G network.
Apple, however, has been unable to strike such a deal, due in part to difference in network technology, but mostly to how profits will be split. (Note: we're sure Apple has the capacity/capability to covert it's iPhone to run on any network, but a deal needs to be done first.)
China accounts for about 15 percent of Apple's total revs and sales will still boost the top line in coming quarters. However, one analyst from the consulting firm Ovum said that the move won't move the needle too much in relative terms. Apple simply won't be able to make a stronger presence in China without that larger deal.
Recent IDC points to Apple slipping a few spots to sixth-largest OEM in China and pre-orders for the latest iPhone topped 300,000. Rivals like Samsung, Lenovo, and Coolpad have retained the top three spots.
Apple carriers in the country include China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA).
So, while Apple's efforts to bring product to China at a more rapid pace are admirable, it still has one more mountain to climb before the fruits will be ready for harvest. Shares are down about 0.7 percent early Friday.