The people in China may be dumb enough to be Shaves for Apple but China Mobile will never be a slave to Apple. Apple makes most of their money from selling iphones, over 70% of revenue. Apple's contracts all look the same, they demand carriers to take millions of iphones per month and get paid huge subsides to boot for all those phones up front. China Mobile will never agree to that.
Phone carriers will have more iphones on their shelves than they can sell but Apple got paid for all of them and takes the money and run. Apple now is in 7th place in selling phones in China, they no longer have any power in forcing carriers to take their demands.
Now there are smartphones on the market in China that have twice the features of iphones and selling for under $200, the people in China will not want to be seen with the new Cheap iphone.
90% of China Mobile customers pay between $17-$30 per month for their phones, that still leaves 10% that may buy the best phones on the market, Will the next iphone be able to compete with the best phones on the market, that is the question.
CHL Signs a deal with Apple and China Mobil's stock goes over $60 in nothing flat. That's what selling 50 Million IPhone's does for your stock, pure and simple. China Mobil adds 100 Million more subscribers going over 800 Million subscribers on sales of the new IPhone 5C and 5S In addition to the new IPhone 6.
Sentiment: Strong Buy
Wake up, you are dreaming, technology passed Apple by. The phones China Mobile is selling have twice the features of any Iphone, Who will Timber Cook steal patent IP from to make their new phone? Will Obama say it's ok again and save Apple?
Sell at open tomorrow, that will be the high, big drop on sell the news tomorrow.
AAPL is between a rock and a hard place.
IF an agreement is reached between AAPL and China Mobile, the
margins reflected in this agreement will be down substantially. There
is no guarantee how many phones will be sold under the agreement.
The U.S. carriers (AT&T, Verizon etc.) will demand the same conditions
that AAPL agreed with China Mobile when that deal is reached. This
will also lower margins between AAPL and U.S. carriers.
UNLESS AAPL announces a new product on 9-10-13 (smart watch and TV
won't cut it), AAPL will trade sideways between 450 and 510 for the rest of
AT&T and Verizon are in different markets than China Mobile, so NO, apple would not offer a similar deal to US carriers. the margins on a China Mobile deal with affect only those sold through China Mobile, so while it might bring margins down slightly, it is all incremental profit contribution. if you read analysts reports there are plenty of other carriers that serve 2 billion subscribers that apple can sign deals with (including japan's Doco) if you assume that apple shares cant trade higher on introduction of an iphone 5S with fingerprint sensor and some type of electronic wallet (bigger than PayPal within a year), plus the new iphone 5C, which will drive market share expansion dramatically, then you are blind. apple's p/e is only reasonable if earnings continue to fall, if they stabilize or grow, then 600, 700 and even 1,000 are highly reasonable. a number of analysts have $50 per share earnings projected for next fiscal year, a p/e of 15-20 is not out of line. in order to see price appreciation, apple needs to get the iphone launches, distribution agreements and add ecommerce with the fingerprint sensor. they dont need any other new product.
It's going to be out of phone company hands one of these days. Cook is pushing for a 50% share of iphones sold up from the present 20% from its own stores. iphone sales from others don't add anything much to their other product sales.
China Mobile Has left Billions on the table over the last couple of years due to their arrogance and stupidity. The shareholders and customers have suffered long enough. They'll not only agree to the terms and conditions, but bend over and take it right up the wazoo like the rest of the carriers. Don't worry, China Mobile will be running those phones up their customer rear-ends to the tune of a BILLIONS IN REVENUE over the next DECADE. You can take that to the bank. Now bend over and grab your ankles....LOL
you are either very young and stupid, very old and stupid or just #$%$ stupid. china mobile does not need aapl for anything except for an occasional blowie from granpa timi. China mobile has never left any money on the table beancounter, and your comment doesn't really indicate a much of anything in financial terms.
They need Apple to grow their market share probably more than apple does. Tim Cook told Chairman Xi Guohuato to bend over and take it like a man and he complied. He doesn't have much choice anymore.