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Apple Inc. Message Board

  • nsgisok1 nsgisok1 Jan 31, 2013 1:01 AM Flag

    China Mobile and stock surge?? Serious Answers Please

    I have held AAPL for some time, and have faith that they will lose their arrogance and listen to the public. However, what I don't understand is the reaction of the stock with a China Mobile deal. You know that when there is some truth to a rumor, stocks go up or down, dependent upon sentiment. There has been plenty of news about Cook's travel and visits to China Mobile, the rumor of the cheap iPhone, builds to support the iPhone,etc. with that said, why isn't the stock moving upward? Is the news of a deal a farce? Is the potential deal too far out for today's investor? Is it that investors don't like this deal? There are many articles to support that NO growth for AAPL equates to $600 per share. Shouldn't this rumor help move the needle upward in the here and now ???

    Sentiment: Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • It will be a very powerful upward movement. My Chinese friend tells me the way China loves American Cars for an example. And, just remember that Appl doesn't need to dominate all parts in the smartphone market in China.Just a piece;)

    • Don't get your hopes up high. I can think of many reasons Apple will have difficulty in China. Chinese protectionism on their own telecom industry, they rather their young upstart become dominant players than for Apple to take share in China market too quickly, then there is the issue of phone subsidy, that isn't going to fly with China Mobile or any major Chinese operator. They'll play Samsung against Apple so there is no chance of subsidy. So how is apple going to sell high priced phones in China without subsidy?? Average salary in China is like $8k/ year. Those payment plans on credit is a joke... that doesn't attract Chinese buyers at all. Third, telecom is a sensitive industry in China, just like US don't permit Chinese operators in US markets, there is a good chance Chinese might feel the same about Apple - imagine every one with a US telecom device in China? who is listening in?? get it? People don't think about this, but the concerns are real for a socialist society. All these obstacles, it is difficult for apple to break ground in China. Not saying there won't be a deal, but any deal would be very restrictive and benefit China 10x before Apple gets much. Not easy doing business in China. And all of this assuming no other competition in China.... which is obviously not the case. Those are the reasons why I went bearish on the stock back in Oct last year.

      • 1 Reply to idbtc
      • Apple® today announced the Wi-Fi + Cellular versions of iPad® mini and the new fourth generation iPad with Retina® display will be available in China on Friday, January 18. iPad mini and the fourth generation iPad are currently available in more than 100 countries worldwide including the US, Australia, Canada, China, France, Germany, Japan and the UK.

        Sentiment: Strong Buy

 
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