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

Pegatron faces renewed labor scrutiny after death of under-age worker at iPhone 5c factory [Updated]

China Foxconn

Update: Apple has issued a statement stating that it sent medical experts to investigate and found no link to the boy’s employment. It has not commented on the fact that the worker was under-age, but it has been revealed that he used his 21-year-old cousin’s ID to get the job.

Last month we sent independent medical experts from the U.S. and China to conduct an investigation of the (Pegatron) factory. While they have found no evidence of any link to working conditions there, we realize that is of little comfort to the families who have lost their loved ones.

Apple has a long-standing commitment to providing a safe and healthy workplace for every worker in our supply chain, and we have a team working with Pegatron at their facility to ensure that conditions meet our high standards.

Original story:

China Labor Watch says Pegatron has failed to properly explain the deaths of five young workers at a factory making the iPhone 5c, including one who was found to be just 15 years old, reports the Sydney Morning Herald.

Pegatron, the Taiwanese manufacturer that employed him, said the workplace environment at the Shanghai plant was not the cause of his illness. But a spokeswoman acknowledged that several other young workers at the factory had also died in the past few months [...]

“Considering the sudden deaths of five people and the similar reason of the deaths, we believe there should be some relations between the tragedy and the working conditions in the factory,” said Li Qiang, who runs China Labor Watch …  Read more

WSJ: Apple and China Mobile strike a deal, iPhone finally headed to world’s largest mobile carrier around Dec. 18

China-Mobile-iPhone-5s-5c-poster

The Wall Street Journal reports that Apple has finally reached an agreement with China Mobile to carry the iPhone. China Mobile is currently the world’s largest mobile carrier with well over 700 million subscribers. Yesterday a subsidiary of the carrier started taking pre-orders for the smartphone, though the page was quickly pulled from its website.

In September the advertisment above leaked to the media. The image is a promotion for the iPhone 5s and 5c running on China Mobile’s network. The Chinese government, which controls China Mobile, confirmed that the phone would be available on December 18th last month, although neither Apple nor China Mobile would actually confirm the rumor.

China Mobile subsidiary briefly accepting pre-orders for iPhones in possible soft launch

china

With the iPhone launch on the biggest carrier in the world’s most populated market confirmed for 18th DecemberFortune spotted what appears to have been a soft launch in the city of Suzhou. The city is one of the richest in China, so would be a logical place for an early launch.

The attached screen grab comes from a website owned by a subsidiary of China Mobile Limited in Suzhou, a city of 5 million just west of Shanghai.

The site went live late Monday local time, when it began taking pre-orders for the iPhone 5S and iPhone 5C …  Read more