In rare TV interview, Tim Cook says he is ‘honored’ to be doing business with China Mobile

In a rare TV interview, Tim Cook described this week’s launch of the iPhone on China Mobile as “a watershed day” for the company. While the soft-spoken Apple CEO is noted for the humbleness with which he speaks, it’s hard to imagine him describing Apple as being “honored” to do business with many other companies.

I’m so honored to be doing business with … China Mobile. It’s a huge announcement…we’re incredibly impressed with them, we have deep respect for them, and have had from the very first discussion that we’ve had together” …  Read more

AAPL stock more than 3 percent up on China Mobile news

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After the fall in Apple’s stock value when the China Mobile failed to materialise as expected on 18th December, yesterday’s news that the deal had finally been concluded sent the stock shooting back up again, having climbed more than 3 percent at the time of writing (it was up 4% in pre-market trading but has settled).

With the WSJ having reported that 18th December was the day, the market was clearly jittery when nothing materialized. Everything had appeared to be in place: regulatory approval, Apple putting the handsets on sale in China on the opening weekend, China Mobile posters, a pre-order website, in-store displays – and 4G service up-and-running on schedule …  Read more

Delayed China Mobile iPhone launch may be due to renegotiations based on 5c vs 5s sales

Photo: arstechnica.net

Photo: arstechnica.net

KGI’s Mingchi Kuo has suggested in a note to investors that the mystery of the apparent delay in the iPhone launching on the world’s largest carrier, China Mobile, may be due to last-minute renegotiations with Apple on volume discounts across the two new models.

We believe weak sales of iPhone 5C may trigger a re-negotiation of the Apple-China Mobile partnership. While previously we estimated that Apple originally planned the TD-LTE version would account for 30% of total iPhone 5C shipments, our latest survey indicates that demand for the TD-LTE iPhone 5C has declined dramatically due to 5S being far more popular than 5C among China Mobile subscribers [...]

We believe this would necessitate a re-negotiation of the Apple-China Mobile deal and therefore defer its finalization …

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AAPL stock down as market ponders the mystery of the missing China Mobile deal

chinamobile

AAPL stock took a 1.8 percent hit in pre-market trading as China Mobile not only failed to announce its iPhone launch today as had been expected, but its chairman Xi Guohua specifically told reporters that the world’s largest carrier had no announcement to make.

While neither Apple nor China Mobile ever officially confirmed today as the launch date, the Chinese government confirmed the date as the one on which 4G service would begin, China Mobile had said it would launch “a new brand” today and the WSJ seemed confident last month that today was the day.

The deal has been a very long time in the coming, but all the pieces of the puzzle looked to have fallen into place …  Read more

iPhone market share in China more than doubled following 5s and 5c launch

counterpoint-china-iphone

Data from smartphone market intelligence specialist Counterpoint shows that iPhone market share in China more than doubled between September and October even before launching on the country’s biggest carrier, China Mobile.

Apple’s market share rose from just under 5 percent to 12 percent, taking it from 6th place to 3rd place, behind Samsung and Lenovo …  Read more

Get your subsidized iPhones while you can – AT&T says the deals can’t last

unlocked

AT&T’s CEO Randall Stephenson told investors yesterday that with smartphone penetration approaching 90 percent, the existing business model – where carriers sell highly-subsidized smartphones to drive demand – will have to change.

When you’re growing the business initially, you have to do aggressive device subsidies to get people on the network. But as you approach 90 percent penetration, you move into maintenance mode. That means more device upgrades. And the model has to change. You can’t afford to subsidize devices like that.

Many U.S. iPhone buyers don’t realise the true cost of their handsets, as carrier subsidies mean they typically pay no more than $200. The full retail cost of those handsets, however, ranges from $549 for a 16GB iPhone 5c to $849 for a 64GB iPhone 5s. The balance is paid by the carrier, then clawed back through the contract payments …  Read more