Apple gets license to run phones on China Mobile's network

A long-awaited deal between Apple (AAPL) and China Mobile (CHL) appears to have moved closer after the U.S. company received a license for its phones to operate on China Mobile's 3G and 4G networks from the country's Telecom Equipment Certification Center.

Apple's products also obtained licenses to run on the infrastructure of China Unicom (CHU) and China Telecom (CHA), both of which will sell the two iPhones that were unveiled yesterday.

While a deal with China Mobile will open up a market of 700M subscribers, the "low-end" iPhone 5C looks rather pricey for the cost-conscious consumers that Apple was expected to target with the handset. The device will retail at 4,488 yuan ($730), just 800 yuan ($130) less than the top-of-the-line 5S.

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Comments (21)
  • Dennis Baker
    , contributor
    Comments (2130) | Send Message
    Interesting timing.
    11 Sep 2013, 03:31 AM Reply Like
  • pagreen1966
    , contributor
    Comments (661) | Send Message
    Good time to short Apple!


    Will be a buyer again just before the January 2014 earnings report. Could be huge. Just like January 2012.


    Dead money till then!!
    11 Sep 2013, 03:36 AM Reply Like
  • Dennis Baker
    , contributor
    Comments (2130) | Send Message
    "Dead money" seems unlikely. Earnings call in 1 month is going to be a biggie.


    — First numbers on iPhone 5s/5c sales.
    — Earnings estimate for FY 2014 1Q.


    The actual earnings numbers themselves are likely the least interesting bit, that earnings estimate is what is going to drive things one way or the other. Considering how closely Apple's actual earnings have hewn to estimates lately, that's going to be a number analysts and investors pay a lot of attention to.
    11 Sep 2013, 03:43 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1132) | Send Message
    The share price will rise today in premarket!.
    11 Sep 2013, 03:41 AM Reply Like
  • mkarakum
    , contributor
    Comments (59) | Send Message
    If I had 100K I would bet that it will not raise in premarket. I hope it does but, check out the live trading in germany now. Its trading around $487
    11 Sep 2013, 03:47 AM Reply Like
  • lewhite
    , contributor
    Comments (213) | Send Message
    It will have to turn around in a hurry. Down another 13+ already.
    11 Sep 2013, 07:28 AM Reply Like
  • williamfrancis
    , contributor
    Comments (11) | Send Message
    Sorry to say that pre-market is now down at $484! The real WB is still not buying!
    11 Sep 2013, 08:16 AM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
    why are iphones so expensive in China, where they are made?
    11 Sep 2013, 03:49 AM Reply Like
  • synchrogeddon
    , contributor
    Comments (392) | Send Message
    it is because of high taxes, it is the same in Europe, I remember iPhone 5 costing more than 1000$ dollars when it was released... so iPhone 5c for 100$ less than iPhone 5S doesn't seem to change anything for people that earn a few times less but need to pay more, it is almost like buying used car
    11 Sep 2013, 04:00 AM Reply Like
  • williamfrancis
    , contributor
    Comments (11) | Send Message
    The chinese government is not going let you make money so easily in china at the expense of the local manufacturers and national pride!
    11 Sep 2013, 08:16 AM Reply Like
  • btbriant
    , contributor
    Comments (235) | Send Message
    synchrogeddon: "it is because of high taxes, it is the same in Europe, I remember iPhone 5 costing more than 1000$ dollars when it was released"


    Nonsense, I'm afraid.


    Sales tax in Europe is generally about 20% (lower in countries like Germany). Removing the tax brings a $1000 phone down to $833.33. Still an outrageous price.


    The 5C which should be trying to compete with mid level phones like the Lumia 820 costs about 2.5x as much in Europe. Only those with more money than sense will be buying this.


    At the high end the new 5S still doesn't compete with the Galaxy 4S let alone the Lumia 1020.


    Apple badly needs something revolutionary to light up the market. Incremental improvement + sky high prices is only going to lead to continually declining sales and relative obscurity. Apple need a medium to get in touch with Jobs ;-)
    11 Sep 2013, 09:39 AM Reply Like
  • Dennis Baker
    , contributor
    Comments (2130) | Send Message
    What's unsaid here is that this means regardless of a China Mobile deal people will be buying iPhones and using them on CM's network. Likely in fairly large numbers. (though not nearly as many as if there were a deal)
    11 Sep 2013, 05:49 AM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
    A bit disappointed on the 5C phone. Not much less than what an iPhone 5 would have cost had they kept it in production (past experience being a guide). Any speculation when the iPhone 6 will be announced? Might be worth the wait.
    11 Sep 2013, 06:01 AM Reply Like
  • rickraphael
    , contributor
    Comments (345) | Send Message
    The cost of injection molding a 5C case is trivial compared to the cost of machining the aluminum 5 and 5S cases. 5C will be a boost to the bottom line by lowering the cost of goods.
    11 Sep 2013, 08:54 AM Reply Like
  • ninjatrader lee
    , contributor
    Comment (1) | Send Message
    Expected reaction to downside just as the last 10 new product announcements
    It has good support at these overnight pivot points
    I am following the buying at these levels before it gets away on the next leg up
    11 Sep 2013, 08:01 AM Reply Like
  • Bmgue12
    , contributor
    Comments (102) | Send Message
    Finally great news...
    11 Sep 2013, 08:16 AM Reply Like
  • Humble Eagles
    , contributor
    Comments (2782) | Send Message
    Guys, this isn't an announcement from China Mobile. This is being reported by the WSJ. The same group that broke the news a week ago that Apple was planning to ship the lower cost phone to China Mobile. The deal is starting to look like it isn't done, and this looks like the WSJ covering its tracks. I hope I am wrong, but if the deal falls through, what will that do to Apple? Remember, when asked explicitly, the CEO of China Mobile said he would announce the deal as soon as they sign a contract.
    11 Sep 2013, 08:40 AM Reply Like
  • Gillian Orley
    , contributor
    Comments (46) | Send Message
    They are not reporting a deal with China Mobile here. They are reporting the granting of a license to operate on China Mobile's network by the regulatory agency.
    11 Sep 2013, 10:08 AM Reply Like
  • seterk
    , contributor
    Comments (291) | Send Message
    Apple seems to be a classic "buy on the rumour, sell on the news> stock!!
    11 Sep 2013, 09:19 AM Reply Like
  • ninderad
    , contributor
    Comments (53) | Send Message
    In the past the rich chinese dont need cheap Iphone. They bought Iphone 5 and use it as status symbol. Now this time they buy Iphone 5S (the gold one) instead Iphone 5C.
    Wait when they announce the sale number of this new Iphone and China Mobile press release.
    11 Sep 2013, 06:12 PM Reply Like
  • rrosey2
    , contributor
    Comments (885) | Send Message
    The fad and vanity aspect should not be overlooked.


    This will drive Apple 5S and 5C to substantial sales. Then, next year the deals and prices will allow the "masses" to get in on the name recognition. Like Louis Vuitton bags you see everywhere (and don't tell me they are all rip-offs, they come out of the same factory).


    Smart of Apple to create appetite and class, then to reap rewards.


    I buy aapl every day..Averaging.
    11 Sep 2013, 07:18 PM Reply Like
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