Apple needs to successfully execute on both its China Mobile agreement and the short-term bifurcation of its iPhone product strategy. Apple and China Mobile signed a confidentiality agreement back in January and have been working on the completion of a supplier agreement since. China Mobile is a Chinese state-owned telecommunications company with about 70% market share in China, or more than 700 million mobile subscribers - the holy grail of smartphone potential for Apple.
As part of the China Mobile strategy, Apple has split its upcoming iPhone 5S product launch into two offerings: A lower cost 5S for the China Mobile subscriber base and a next generation performance improved 5S for the Americas and European market. Both products will be in the same footprint/screen size as the iPhone 5, with a larger sized screen next generation model planned for launch early to mid next year.
Look for the low cost iPhone 5S launch with China Mobile to be in July with a significant volume ramp up initiating then. Apple's suppliers are already preparing by adding capacity
Will China mobile use this great opportunity to force Apple to make many concessions, and showing who the boss is...knowing that Apple is currently desperate to perform and please shareholders? Or even threaten to NOT use Apple...
What is the general thinking on this angle...anyone knows?
I would guess that Cook took some very good notes on products needed to get into this company. I am sure they did a lot of we need this also. Apple wanted LTE in place in large fashion knowing that the experience was extremely important for Apple. Everyone elae took the path get me in first worry about experience later. In the long run that approach loses.
for being state owned would make it understandable that is hard to get a deal made....mk I think the visit to the lows for AAPL will be fast and quick if it does test 375-365 ish.........so our further pain might be quick!!