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Nikkei: NTT DoCoMo to offer iPhone as soon as this fall

  • The Japanese paper says DoCoMo (DCM +1.1%) is likely to announce a partnership with Apple (AAPL -0.8%) on the day of its iPhone launch. Apple has announced an iPhone satellite event will take place in Tokyo (along with ones in Beijing and Berlin) hours after its main Sep. 10 event in Cupertino.
  • A DoCoMo EVP suggested last month a deal could be close. Previous talks between Apple and DoCoMo reportedly faltered due to Apple's purchase requirements and DoCoMo's insistence on pre-installing some of its apps.
  • DoCoMo, by far Japan's largest carrier (60M+ subs, 1/4 of which are now using 4G phones), has been losing share to SoftBank (SFTBF.PK) and KDDI in large part due to its failure to carry the iPhone. Though DoCoMo's sub base is much smaller than China Mobile's 740M, a much larger portion of it can afford a $450+ (unsubsidized) phone.
  • Japan is the iPhone's strongest major international market. Thanks largely to iPhone sales, Apple's Japanese revenue rose 27% Y/Y in FQ3 to $2.5B, even as revenue fell 14% in Greater China and 18% in the rest of Asia-Pac.
  • Update: Bloomberg reports Apple is "near a final agreement" with DoCoMo, and that the carrier "may begin offering the iPhone later this year."
  • Update 2: Reuters has joined the fray.
Comments (19)
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    Good job! Next would be a China deal and how about India and Pakistan. Hip, Hip Hooray for Apple!
    5 Sep 2013, 02:31 PM Reply Like
  • Matt-Man
    , contributor
    Comments (506) | Send Message
     
    Docomo may bring ~10m more unit sales per year for Apple.
    5 Sep 2013, 02:33 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    Apple need all the sales it might have. Thank you.
    6 Sep 2013, 11:25 AM Reply Like
  • Warren Buffet007
    , contributor
    Comments (873) | Send Message
     
    All going well .
    5 Sep 2013, 02:35 PM Reply Like
  • bgold1955
    , contributor
    Comments (1878) | Send Message
     
    60m subs are not shabby compared to Verion at 100+m. Should account for 4-8m sales in a full qtr (holiday) basis, initially. Very good news!!
    5 Sep 2013, 02:36 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1247) | Send Message
     
    bgold, it is huge!! Everybody is focused on CHL, but NTTDoCoMo might be just about as big. Remember, two of Apple's strongest markets are the US and Japan. If true, this makes Apple's fair value (very conservative) $600-$650 in my book. CHL would add $50 to those numbers. Why those execs didn't keep some Apple baffles me!
    5 Sep 2013, 03:50 PM Reply Like
  • bgold1955
    , contributor
    Comments (1878) | Send Message
     
    Not too much excitement with stock thou. Maybe it's sell the rumor and buy the announcement. Hopefully. No selling here for me.
    5 Sep 2013, 03:58 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1247) | Send Message
     
    No, I think *everybody* is expecting the standard Apple phone rollout selling of the news, so the stock is very capable of rising sharply on any surprises. The elephant in the room is Apple's phone sales last qtr--they were quite strong with old phones and stable distribution. If the 5C is $400-500, I think Q1 could be shaping up to >60mm phones without CHL. They could approach 70mm if they get CHL. When that sinks into Mr. Market's head is anybody's guess. If they disappoint big time next week, the downside is likely limited imho.
    5 Sep 2013, 04:26 PM Reply Like
  • Jake2992
    , contributor
    Comments (820) | Send Message
     
    The Chinese market is already saturated with smart phones, Iphones simply can't set themselves apart in the chinese market with all the cheap droid phones. If Apple wants to sell in China expect to see their margins fall and spend a lot in advertising, something that may end up losing them money in the long run.

     

    I have apple at 455 fair value.
    5 Sep 2013, 09:09 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (3663) | Send Message
     
    Jake, Apple only needs to sell 10-15M more per quarter to add 50% to iPhone sales on most Qs, easy thanks to China and Docomo, will be good for Apple stock, add about 40-50$.
    5 Sep 2013, 09:36 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    Are you long with Apple?!
    6 Sep 2013, 11:28 AM Reply Like
  • Humble Eagles
    , contributor
    Comments (1247) | Send Message
     
    It is saturated with fried rice, too, but they will sell enough to cover Rhode Island three feet high this year! Over a billion people and most don't own a smartphone, and it is a repeating market. If you think a $150 Android will compete with the 5C, then I will trade you a Kia coupe for a Lexus 460 this weekend, Jake.
    6 Sep 2013, 11:32 AM Reply Like
  • Viper740
    , contributor
    Comments (126) | Send Message
     
    This is good news. DoCoMo is by far the most popular carrier in Japan, and the fact that they didn't carry the iPhone was the only thing that kept domestic smartphone makers in business.

     

    If DoCoMo gets the iPhone, it will cement the death of Japanese smartphone makers, who not only cannot compete at home against Apple and Samsung, but have almost no overseas presence (except for the Sony Xperia, which is largely outsold by Apple and Samsung anyway).
    5 Sep 2013, 02:45 PM Reply Like
  • Jake2992
    , contributor
    Comments (820) | Send Message
     
    Sorry, but that is the most absurd thing I have ever heard. If the demand was so great for iPhones, then there would have already been a deal...
    5 Sep 2013, 09:11 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (3663) | Send Message
     
    Demand was great, but Docomo wanted Apple to install software, Apple refused. Docomo lost marketshare over the past years...now they found an agreement.
    5 Sep 2013, 09:34 PM Reply Like
  • Jack Baker
    , contributor
    Comments (871) | Send Message
     
    This is VERY big news. I am puzzled that AAPL is not rallying on this news. It also makes the China Mobile announcement more likely next Tuesday.
    5 Sep 2013, 03:21 PM Reply Like
  • synchrogeddon
    , contributor
    Comments (144) | Send Message
     
    yeah, so many good news, market up and AAPL is down, this is bs...
    5 Sep 2013, 03:52 PM Reply Like
  • Jake2992
    , contributor
    Comments (820) | Send Message
     
    Simple. The market knows this is by no means a big deal. Apple will see their margins get slashed way before they pick up enough market share to make a dent on their bottom line. They could end up losing money on this deal.
    5 Sep 2013, 09:13 PM Reply Like
  • krames
    , contributor
    Comments (175) | Send Message
     
    I think the reason apple is not surging is because it is not sure what the Margin is going to be. The CM was announced after hours on friday. Yes Friday , after hours but would have thought the stock would have been up more than $2:00.. I think the stock will pop $7 to $10 maybe more.. If it goes down I am selling buts or maybe buying calls or both to pay for the call..
    7 Sep 2013, 05:30 PM Reply Like
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