Apple deal with China Mobile
I thought you might find this Market Current on Seeking Alpha interesting:
China Mobile’s (CHL) negotiations with Apple (AAPL) over a deal for the Chinese company to sell iPhones and iPads have been progressing well and both companies are optimistic about coming to an agreement, China Mobile Chairman Xi Guohua has said.
“Both sides sounded keen,” Xi said after the company unveiled H1 results. China Mobile is the only operator in the country that doesn’t have a deal with Apple to sell its devices.
With Apple’s sales in Greater China slumping 43% in FQ3, pressure growing about the lack of innovation, and Carl Icahn agitating for an immediate stock buyback, a deal with China Mobile would probably provide a welcome boost to Apple.
Why a deal with China Mobile would be significant for Apple. China Mobile is the world’s largest mobile phone company by users, with over 726 million subscribers
Fortune reports the website of a China Mobile subsidiary for the city of Suzhou (located near Shanghai) began taking iPhone 5S and 5C reservations last night, before halting its efforts today.
Apple and China Mobile have finally inked an iPhone deal,[ Edited: 05 December 2013 03:41 AM by DonRight ]
WSJ reports.APPL will now have access to the carrier’s 700M subscribers — that’s “seven times the size” of Verizon’s base, MarketWatch notes.
Rollout is expected this month.
Chinese 4G licenses handed out, services to start soon
An ad on China Mobile’s site suggests the world’ biggest carrier will begin taking pre-orders for the iPhone 5S on Thursday, as well as for 4G phones from Samsung and Sony.
A company rep confirms 4G pre-orders will start on Thursday, and that services will launch on Dec. 18 (the day of CHL’s 4G partner event).
Apple’s deal with China Mobile Ltd. to sell iPhones won’t be limited to handsets, but will also entail broad cooperation between the two companies, the chairman of the world’s largest carrier said Wednesday.
China Mobile Chairman Xi Guohua said that already multi-millions of Apple’s iPhones have been ordered by its customers, signaling strong demand for the device. Apple’s iPhones will begin selling at China Mobile, the world’s largest carrier by subscribers, starting Friday.
Speaking in a small media briefing to Chinese media and The Wall Street Journal, Apple Chief Executive Tim Cook said he is “incredibly optimistic” about the outcome of the cooperation with the Chinese carrier.
“We’ve gotten to know each other….today is a beginning, and I think there are lots more things our companies can do together in the future,” Cook said.
The new cooperation with China Mobile is the last piece of the puzzle for Apple in the country, officially making the iPhones available through all three of China’s state-run telecom carriers. Though neither Apple nor China Mobile would comment on the exact terms of the deal, Apple is likely to get a considerable bump from China Mobile, which analysts expect to spend generously on marketing and handset subsidies to sell the iPhones.
The cooperation also massively expands the reach of Apple’s sales channels in China, making the iPhones available in China Mobile’s thousands of stores that range across the country from large cities to tiny hamlets.