Is Apple’s agreement with China Mobile the deal of the century?

Shares of Apple [AAPL] were up 0.61% yesterday on the news that the company has finally reached an agreement with China Mobile [CHL].

According to Motley Fool analyst Jason Moser, Apple has been pushing for this deal for a while, since it will provide the company with a subscriber base of nearly 760 million new customers.

However, Jason notes that those new customers have considerably less spending power than Apple’s customers in the United States, which means that Chinese buyers will be more sensitive to phone prices, and may not respond well to the constant replacement cycle that Apple pushes.

Direct link to video here.

Related articles:
Apple-China Mobile deal already priced into AAPL stock price? – December 5, 2013
Apple may earn $10 billion in added revenue via China Mobile iPhone deal – December 5, 2013

16 Comments

  1. The headline will soon be : AAPL drops over deals not inked .

    The deal has not inked , AAPL fall sharply on 18th . DOWN -13% to drop as low as 500 .

    Anal ists worry that Apple growth story will soon end . And android market share keeps growing .

  2. I get fed up with lines like “the constant replacement cycle that Apple pushes.” Apple makes (now) just two phones, upgraded yearly. If they weren’t upgrading them people would be saying they phones are out of date. People already say Apples to make enough variants (I’m looking at you, BLN and all you large screen advocates). How many smartphones has Samsung put out in the last year.

    Meanwhile Apple supports it’s older models with software upgrades long after other manufacturers EoL theirs.

    Here in the UK at least it’s he networks that push for regular upgrading.

    I’ve only had three iPhones, a first gen, a 4 and now a 5s.

  3. What deal? All I see are conjectures based on assumptions. There’s no deal anywhere to be seen.

    The news agencies are jumping the gun here. Until I see a deal, there’s absolutely no effect on the share price whatsoever. Buy at your own risk.

    1. >The news agencies are jumping the gun here<

      But they get page hits – and that's what counts to them!! They chase market share quantity, not market share quality.

    2. I don’t see a deal either (not to say that that there isn’t one in the works) and you are right, the news agencies are of course jumping the gun, speculating and shoveling out drivel for the brainwashing of the masses. I mean I saw one guy today writing an article of what Tim Cook would say if he were less polite. Oh it wasn’t an interview with Tim Cook who said what he would say if he were less polite, it was the jourANAList speculating and as you say, jumping his gun, and shooting it off. Oh those blanks make such big noise.

      Anyway, I think it does have an effect on the share price, speculation seems to be common currency around whore street, and listen, listen carefully.

      You can hear the chant…
      “Manipulators, manipulators, manipulators.”

  4. Ok, half (50%) of Apple’s sales is iPhones. Adding China Mobile’s customers (that are more than 3 times AT&T and Verizon’s combined users) as possible Apple customers is _? And the matching halo for other iOS devices and Mac products along with the services is _?

    Ok, nothing happen here. “These are not the droids you are looking for.” “Move along now.” We will have to hold of for the sales reality to sink in next year. Ok, I wasn’t selling my shares anyway!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.