Apple (AAPL) Just Steps Away From Inking Key Deal with China Mobile (CHL)
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Price: $314.86 -0.77%
Overall Analyst Rating:
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Dividend Yield: 0.4%
Revenue Growth %: +15.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
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Though no formal announcement has bee made yet, Apple (Nasdaq: AAPL) has reportedly received a key license to make its iPhone line available to run on China Mobile's (NYSE: CHL) network.
The WSJ today noted that China's Telecom Equipment Certification Center on Wednesday said that Apple received a
On Tuesday, Apple said that its latest handsets -- the iPhone 5S and iPhone 5C -- would go on sale in China on September 20th, which is the same day they will be released in Noth America and several other key markets. China Unicom and China Telecom are expected to carry the device out of the gate and many expect an deal will be reached with China Mobile -- the world's largest wireless carrier -- very soon.
While market speculation has Apple losing a bit of negotiating power with China Mobile given increasing competition for the iPhone, analysts still see the device is key for China Mobile if it plans on markedly increasing revenues and converting more customers to its faster 3G (and eventually 4G) networks. Many of China Mobile's customers are still on 2G or lower networks.
The move would also bolster and accelerate Apple's position in China. With the iPhone 5C starting at $99 with a new two-year contract, owning an iPhone would be more obtainable than ever for many consumers in China.
In its most recent quarter, Apple's sales in China fell 14 percent to $4.6 billion, while its market share is just at 5 percent.
Shares of Apple are down 2.4 percent early Wednesday.
The WSJ today noted that China's Telecom Equipment Certification Center on Wednesday said that Apple received a
network access licensefor a handset to run on China Mobile's network standards for third- and fourth-generation cell services. Apple also received licenses related to China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) technology.
On Tuesday, Apple said that its latest handsets -- the iPhone 5S and iPhone 5C -- would go on sale in China on September 20th, which is the same day they will be released in Noth America and several other key markets. China Unicom and China Telecom are expected to carry the device out of the gate and many expect an deal will be reached with China Mobile -- the world's largest wireless carrier -- very soon.
While market speculation has Apple losing a bit of negotiating power with China Mobile given increasing competition for the iPhone, analysts still see the device is key for China Mobile if it plans on markedly increasing revenues and converting more customers to its faster 3G (and eventually 4G) networks. Many of China Mobile's customers are still on 2G or lower networks.
The move would also bolster and accelerate Apple's position in China. With the iPhone 5C starting at $99 with a new two-year contract, owning an iPhone would be more obtainable than ever for many consumers in China.
In its most recent quarter, Apple's sales in China fell 14 percent to $4.6 billion, while its market share is just at 5 percent.
Shares of Apple are down 2.4 percent early Wednesday.
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