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Old Dec 4, 2013, 08:35 PM   #1
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Apple Finally Signs Deal With China Mobile for December iPhone Launch




Apple and China Mobile have finally reached a deal that will see the world's biggest mobile carrier offering the iPhone on its network, reports The Wall Street Journal.

China Mobile, which has more than 700 million subscribers, is expected to begin selling the iPhone around December 18 following a China Mobile conference in Guangzhou where the company is also expected to debut its 4G network. Earlier today, the Chinese government finally granted TD-LTE licenses to China Mobile, China Unicom, and China Telecom, the country's three major carriers.

China Mobile is one of the last major carriers in the world that does not currently offer the iPhone, and the deal could bring a huge boost in sales to Apple. Currently, only China's smaller carriers, China Telecom and China Unicom, offer the iPhone on their 3G networks.
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A deal with China Mobile would give Apple access to a subscriber base that is seven times the size of Verizon Wireless, the U.S.'s largest carrier. Greater China, including Hong Kong and Taiwan, is Apple's third biggest market after the U.S. and Europe in terms of revenue.
Apple and China Mobile have been in talks for several years, and CEO Tim Cook traveled to China to meet with China Mobile Chairman Xi Guohua back in July where the two made headway on a potential deal.

News of a finalized deal has been expected since September, as the iPhone 5s and the iPhone 5c were the first iPhones supporting China Mobile's TD-LTE standard. Apple also received the final license it needed to operate on China Mobile's wireless standard back in September following the launch of the newest iPhones.

Update: A China Mobile spokesperson tells Reuters that the two companies are "still negotiating".
Quote:
"We are still negotiating with Apple, but for now we have nothing new to announce," China Mobile spokeswoman Rainie Lei said, declining to elaborate. Apple also declined comment.
Article Link: Apple Finally Signs Deal With China Mobile for December iPhone Launch
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Old Dec 4, 2013, 08:36 PM   #2
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We all knew it was coming, but it's welcome news nonetheless. So far, there's no after-hours market reaction, but it may well have been priced in already, particularly with the premature pre-orders and the earlier announcement that China had approved the 4G licenses.
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Old Dec 4, 2013, 08:36 PM   #3
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Old Dec 4, 2013, 08:37 PM   #4
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Awesome!

Get ready for the stock to pass the $600 per share mark before year's end!

It's "on sale" right now.
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Old Dec 4, 2013, 08:40 PM   #5
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Finally!

Can't wait for pre-market trading tomorrow! I don't think this was priced in to happen this year. Priced to expect early 2014 agreement.
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Old Dec 4, 2013, 08:41 PM   #6
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China Mobile, which has more than 700 million subscribers, is expected to begin selling the iPhone around December
woow, that is a lot of subscribers! $$$$ for
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Old Dec 4, 2013, 08:42 PM   #7
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No surprise, but great news nonetheless!
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Old Dec 4, 2013, 08:42 PM   #8
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My guess is that the cellphone radio chip on both the iPhone 5C and 5S are fully compatible with the TD-SCDMA and TD-LTE digital cellular standards used by China Mobile "out of the box" but was not revealed until now.

This means China Mobile's 750 million user base can now use the iPhone even in LTE mode.
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Old Dec 4, 2013, 08:47 PM   #9
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Old Dec 4, 2013, 09:05 PM   #10
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Good news for Apple, but keep in mind that almost any China Mobile subscriber that wanted an iPhone already got one. In China there are almost no subsidies (aka trap for fools :-P) for mobile phones. People is used to just buy the phone they want, and you can buy an unlocked iPhone in many places, including the Apple store.
The main advantage is that this new version of the iphone will finally support China Mobile's 3G and 4G standard.

If someone is wondering how anyone could use an iPhone only with 2G (as most international standard phones are not compatible with CM's 3G network), I will tell you that maaany smartphone users in China have a very small data plan (30-100 MB/month) or even no data plan at all. They use mobile data for messaging (text only) and little more.
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Old Dec 4, 2013, 09:05 PM   #11
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Great, longer delivery times for iPhone 6
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Old Dec 4, 2013, 09:09 PM   #12
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Quote:
Originally Posted by Marc-SP View Post

Good news for Apple, but keep in mind that almost any China Mobile subscriber that wanted an iPhone already got one.
Oh I think Apple will sell a couple iPhones on China Mobile. Maybe even a few
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Old Dec 4, 2013, 09:10 PM   #13
KPOM
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Originally Posted by The Barron View Post
Get ready for the stock to pass the $600 per share mark before year's end!

It's "on sale" right now.
Hopefully you are right. In today's WSJ I had to read how I should have put my money into American Airlines stock after they went into Chapter 11. Talk about "on sale" - it was $.20 then and now it's over $11 (kind of like buying Apple just before the Microsoft deal in 1997).

In any case, I'll be happy if Apple goes back above $600. My average cost is around $450/share.
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Old Dec 4, 2013, 09:15 PM   #14
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Quote:
Originally Posted by Marc-SP View Post
Good news for Apple, but keep in mind that almost any China Mobile subscriber that wanted an iPhone already got one.
You have a point but keep in mind that we have have a couple notable examples to refer to; I think it has turned out quite well for Verizon and NTT DoCoMo.
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Old Dec 4, 2013, 09:35 PM   #15
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Quote:
Originally Posted by Michael Scrip View Post
Oh I think Apple will sell a couple iPhones on China Mobile. Maybe even a few
Sure, that's why I said "good news for Apple". I just want people to understand that there are not 700 million people (or even 100m) waiting like zombies for the iPhone to land on their network. If they wanted an iPhone (and could afford it), they already got one. All people I know in China with iPhone are using CM (it's the most popular carrier after all).

----------

Quote:
Originally Posted by sh0vel View Post
You have a point but keep in mind that we have have a couple notable examples to refer to; I think it has turned out quite well for Verizon and NTT DoCoMo.
Correct me if I am wrong, but I was under the impression that Verizon and DoCoMo are not so friendly towards devices not sold by them. China Mobile, on the other hand (like most European carriers) doesn't care where you got your device as far as it can work in its network (same standard).

Last edited by Marc-SP; Dec 4, 2013 at 09:48 PM.
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Old Dec 4, 2013, 09:41 PM   #16
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Old Dec 4, 2013, 09:41 PM   #17
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I hope we find more details about the deal between apple and china mobile. Was china mobile able to work out more favorable terms by waiting so long to sign on?
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Old Dec 4, 2013, 09:42 PM   #18
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And now even less availability for the iPhone 6 launch.
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Old Dec 4, 2013, 09:43 PM   #19
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Originally Posted by Marc-SP View Post
If they wanted an iPhone (and could afford one), they already got one.
Pretty much nailed it with that statement right there. But most will not understand this.
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Old Dec 4, 2013, 09:46 PM   #20
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No. Apple will sell way more iPhones because of this deal. Way way more.

Way way more.

Bookmark page and come back next quarter.

Way

More lol
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Old Dec 4, 2013, 09:47 PM   #21
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I think those posting that everyone who wanted on on CM already has one are overestimating how the general population behaves around technology. And don't forget, those who are using an iPhone on CM right now can't even get 3G or LTE. Anyone who wants any sort of data would be waiting for the official support.
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Old Dec 4, 2013, 09:48 PM   #22
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$$$
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Old Dec 4, 2013, 09:56 PM   #23
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Quote:
Originally Posted by 081440 View Post
I think those posting that everyone who wanted on on CM already has one are overestimating how the general population behaves around technology. And don't forget, those who are using an iPhone on CM right now can't even get 3G or LTE. Anyone who wants any sort of data would be waiting for the official support.
Sure they will sell more iPhones, just not as many as the 700m subscribers number could suggest. The few people really needing 3G are in China Unicom.
As I said, many smartphone users in China have a really small or no data plan. 2G (GPRS-EDGE) is enough for them (even beneficial, as they cannot reach their small data cap in a few minutes by mistake).
China is not like USA where many times you are forced to get an expensive data plan if you want an smartphone (even if you just use the data to send text Whatsapp messages and get updates on the weather).

I pay about 8 USD for my phone plan in China Mobile (including a few hours of free calls, 200 SMS and 200 MB of data). I have wifi at home and at the work place. Many tines I still have 20-30 MB of mobile data left at the end of the month. Why should I pay more? I think in most countries of Europe you can also get similarly priced plans, with some more data (500MB).

Last edited by Marc-SP; Dec 5, 2013 at 12:36 AM.
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Old Dec 4, 2013, 09:57 PM   #24
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Quote:
Originally Posted by Marc-SP View Post
Correct me if I am wrong, but I was under the impression that Verizon and DoCoMo are not so friendly towards devices not sold by them. China Mobile, on the other hand (like most European carriers) doesn't care where you got your device as far as it can work in its network (same standard).
Actually I think China Mobile (like NTT DoCoMo I believe) wanted preinstalled apps, carrier branding and revenue sharing of some sort. The issue with Verizon was mostly the exclusive contract that Apple had with ATT. I believe Android OEMs facilitated these 3 things and some carriers were seeking to use this as leverage against Apple.

I'm not fully certain of all of these since it's been quite a while since these issues have been of major focus in tech news reporting. I agree with all the points you've made though, there are a lot of nuances to consider.
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Old Dec 4, 2013, 10:00 PM   #25
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Wow, will this be big and good for Apple. Good for them.
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