China Mobile Ltd. (NYSE:CHL) (HKG:0941) shared its plan to introduce a new brand to their carrier and there is a good chance it will be Apple Inc. (NASDAQ:AAPL). The Wall Street Journal reports the launch date is set for December 18th during the 4G global partners conference in Guangzhou.
Marvin Lo (securities analyst for Mizhuo Securities) explained, “A deal with China Mobile would give Apple Inc. (NASDAQ:AAPL) a big boost in the China market as the largest local carrier has the most wealthy subscriber base. I estimate that among China Mobile Ltd. (NYSE:CHL) (HKG:0941)’s more than 700 million mobile subscribers, at least 10% or 70 million wealthier ones would be potential customers for iPhones.”
China’s plan to bring 4G licenses next week
Executives for China Mobile previously stated that the iPhone would likely become available after they launch 4G on their network. According to some media reports, CM may be one step closer as rumors indicate China’s plan to bring 4G licenses next week. China Mobile Ltd. (NYSE:CHL) (HKG:0941) is not just the largest carrier in China, it’s the largest carrier in the world. Allowing customers to purchase the iPhone through CM would be a huge win for Apple.
China, Indonesia, and India are just part of the group of emerging markets. Smartphone makers are trying to win these markets and sell more phones. China in particular is the most attractive market as the smartphone saturation is less than 50 percent. The Wall Street Journal also added, “Tapping China Mobile’s big pool of subscribers could help Apple expand its reach in China as competition intensifies. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Sony Corporation (NYSE:SNE) (TYO:6758) already work closely with China Mobile. China Unicom started offering the iPhone in China in 2009 while China Telecom Corporation Limited (NYSE:CHA) began offering the device in March 2012.”
Apple iPhone to China Mobile would be a good move
Although bringing the Apple Inc. (NASDAQ:AAPL) iPhone to China Mobile would be a good move for the company, reports already indicate China Mobile Ltd. (NYSE:CHL) (HKG:0941) already has 42 million iPhone users. These customers purchased the iPhone for full price from other sources and used CM SIM cards.