Originally Posted by iGrip
ISTM that China Mobile is doing just fine without the iPhone, given their recently announced infrastructure investment. AAPL. on the other hand, is doing badly, in large part due to a perceived flattening of growth. New markets are a likely growth path for Apple.
You do the math.
I don't agree with your thesis. If past is prologue, China Mobile should want the iPhone. I'm sure I don't have to spell out the reasons why for you (if you're unsure what I mean, ask SoftBank who doubled their profits by offering iPhone).
Has APPL stock has recently dropped? Yes. Has growth in the smartphone market slowed? Yes. Does this mean Apple should bend to China Mobiles terms if they deem them unfavourable? Of course not, Apple have never chased market share for its own sake.
You're right that new markets are where the growth is, and I think Apple would love to get the iPhone on the largest carrier in China, but in my opinion, they'll require China Mobile to pay handsomely for the privilege.