Analyst: China Mobile Will Get More Out of iPhone Deal Than Apple

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Source: Apple.com

Speculation that Apple (NASDAQ:AAPL) is close to reaching a deal with China Mobile (NYSE:CHL) has reached fever pitch this week, and analysts are forecasting what an agreement with the world’s largest wireless carrier will mean for Apple.

Some think that the deal could boost Apple’s iPhone sales by up to 20 million units in the year after the iPhone goes on sale on China Mobile’s network. Others have been more cautious with their expectations, noting that the unsubsidized price of the iPhone is more expensive than many Chinese consumers can afford.

A new report from Bernstein Research seen by Barron’s suggests that China Mobile’s addition of the new iPhone lineup along with the upcoming launch of China’s 4G network could end up being more beneficial for China Mobile than Apple. Bernstein’s Toni Sacconaghi and his Hong Kong-based colleague Chris Lane speculated that China Mobile will offer a substantial subsidy on the iPhone, as that has been the company’s practice in the past and will help more Chinese customers be able to afford one of the phones.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business