Seeking Alpha

Apple strikes iPhone deal with China Mobile, sales start on Jan. 17

  • It finally happens: Apple (AAPL) announces it has entered into a multi-year deal with China Mobile (CHL) to offer the iPhone to China Mobile's 760M subs. The iPhone 5S and 5C will be available via China Mobile's retail network, as well as Apple's Chinese stores, on Jan. 17. Pre-registrations start on Christmas. (PR)
  • Importantly, the phones will work on both China Mobile's new 4G TD-LTE network (just coming out of trial mode), and its existing 3G TD-SCDMA network. Either network would offer a major speed improvement for the tens of millions of existing China Mobile iPhone users currently forced to rely on 2G connections, provided they upgrade.
  • Analyst estimates for incremental first-year iPhone sales have ranged from less than 10M to as many as 24M, and estimates for the 2014 EPS benefit have often been in the $2-$4 range.
  • While China Mobile's giant subscriber base and retail reach translate into a major growth opportunity, its low ARPU and the popularity of cheap and large Android phones in China will act as headwinds. Whereas the iPhone 5C starts at an unsubsidized price of ~$735 in China, app analytics firm Umeng estimates Chinese Android phone sales carry an average unsubsidized price of just $233.
  • More on Apple/China Mobile
Comments (168)
  • madness1089
    , contributor
    Comments (216) | Send Message
     
    nice!
    22 Dec 2013, 05:35 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11014) | Send Message
     
    Yawn... again? Is it priced in already given this was announced 2x before incorrectly?
    23 Dec 2013, 03:45 AM Reply Like
  • SILVERSHARK110
    , contributor
    Comments (23) | Send Message
     
    Very nice !
    23 Dec 2013, 04:05 AM Reply Like
  • ystock15
    , contributor
    Comments (169) | Send Message
     
    Another dull head bashing on APPL's stock, but they got no idea how high APPL will go up. That's why they just yawning to hide their jealousy,

     

    Go APPL! We'll hit $700 in no time!
    23 Dec 2013, 05:39 PM Reply Like
  • portatopia
    , contributor
    Comments (517) | Send Message
     
    Yawn? Not quite. I see Samsung is going to lose market shares to APPL in China in 2014.
    23 Dec 2013, 07:33 PM Reply Like
  • Jeff750
    , contributor
    Comments (31) | Send Message
     
    WOO-HOO!
    22 Dec 2013, 05:36 PM Reply Like
  • 2puttwo
    , contributor
    Comments (390) | Send Message
     
    Ha baby!
    22 Dec 2013, 05:37 PM Reply Like
  • Gary J
    , contributor
    Comments (3549) | Send Message
     
    My AAPL says thankyouverymuch !!!
    22 Dec 2013, 05:40 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    Any guesses on where we open and close tomorrow? Congrats to the patient bulls!! Regrets to the shorts! I would think that we would start pressing 600, but a lot could be priced in already..GLTA
    22 Dec 2013, 05:41 PM Reply Like
  • UnStopaBull!
    , contributor
    Comments (165) | Send Message
     
    I would hope between 575-580 minimum
    22 Dec 2013, 06:05 PM Reply Like
  • agliata
    , contributor
    Comments (92) | Send Message
     
    High and higher
    22 Dec 2013, 08:19 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    I own 25 shares, and am making a small paper profit on aapl. But sh*t happens.
    I wouldn't be surprised if something crappy happened, like aapl falling to $510 this week on some bs explanation or projection. hah!
    22 Dec 2013, 05:51 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    That would be a real shock, pman, but I would guess closer to 610 after the short squeeze!
    22 Dec 2013, 05:53 PM Reply Like
  • Lucullus
    , contributor
    Comments (119) | Send Message
     
    there is hardly any shorts on AAPL
    22 Dec 2013, 06:50 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    17 mm shares on last check...600?
    22 Dec 2013, 07:03 PM Reply Like
  • kolizacr@yahoo.com
    , contributor
    Comments (216) | Send Message
     
    Tht would be beautiful as you and I would be able to buy more at ridiculous prices. Whichever the price runs, it is beneficial.
    Hope you have some dry powder
    22 Dec 2013, 07:29 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    Lots of it, and I would love to add, too. Most of the negative talk, I suspect, is from people suffering from wishful thinking, and hoping it will go down so they can buy. I expect a very, very strong rally. 17MM shorts as of two weeks ago. But, Humble is on there for a reason--you can never tell for sure, especially with Apple. Been wrong too many times to recount. GLTA.
    22 Dec 2013, 07:39 PM Reply Like
  • u01bsb0
    , contributor
    Comments (616) | Send Message
     
    I guess i know what lots of Chinese people will be receiving for Chinese New Year on the 31st.
    22 Dec 2013, 05:52 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    It is interesting that CHL didn't announce it at their conference. I got the distinct impression they wanted to, but Apple stopped them. Maybe the left wing ideologues at Apple didn't want the right wing WSJ to accurately scoop them and they delayed it? Who knows?
    22 Dec 2013, 05:56 PM Reply Like
  • kolizacr@yahoo.com
    , contributor
    Comments (216) | Send Message
     
    Apple cannot be lumped together with a bunch of third rate companies.
    Apple has never announced anything in this fashion and naturally didn't want to be viewed as just yet another company for such an important announcemet.
    22 Dec 2013, 07:32 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    Apple has long had a fairly friendly relationship with WSJ with the Journal often getting scoops well before everyone else. Until last week Walt Mosberg worked for the journal and his relationship with Apple was great.
    22 Dec 2013, 10:55 PM Reply Like
  • Sirvasq
    , contributor
    Comments (293) | Send Message
     
    $570 tomorrow, $599 12/26.
    22 Dec 2013, 05:57 PM Reply Like
  • UnStopaBull!
    , contributor
    Comments (165) | Send Message
     
    Why so much higher on 12/26?
    22 Dec 2013, 06:07 PM Reply Like
  • 2puttwo
    , contributor
    Comments (390) | Send Message
     
    My guess is - Michael is going to have to switch sides. This really should be a change with his thought process. He might return a changed man. Humble, my guess it should break the the high for the year, north of 575
    22 Dec 2013, 05:58 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    He did say he closed his shorts and was thinking of going long last week--good for him! Maybe all of the abuse he has taken saved him some money. We may have to wait for earnings and guidance to see the 600s, and that will depend on how they did. If they blew the qtr out, or they have big guidance, we rally very hard. If they end up flat on guidance and hit guidance for this qtr, we likely stay about here, I suspect. It all just depends on how they did this qtr. 575 sounds like a safe guess, but we will see how many shorts panic tomorrow morning!! Could be solidly higher with a good short squeeze.
    22 Dec 2013, 06:09 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    Blair is too emotionally invested, and makes too much money being the chief Apple bear on seeking alpha. No change he'll switch sides.
    22 Dec 2013, 07:00 PM Reply Like
  • Keyser Smith Jones Soze
    , contributor
    Comments (97) | Send Message
     
    It is a virtual certainty that he will figure out some way that this is negative for Apple. I'm completely serious. That is exactly what he will do. wait and see.
    22 Dec 2013, 08:31 PM Reply Like
  • aardvark3
    , contributor
    Comments (335) | Send Message
     
    Best way to deal with Blair is not to open any emails SA with his name on them. Let's not even mention his name. He was sort of like the 80's a time we would rather forget.
    22 Dec 2013, 10:32 PM Reply Like
  • flabingo1
    , contributor
    Comments (81) | Send Message
     
    AMEN the idea that he makes money by his posts is horrible
    22 Dec 2013, 10:43 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    As aardvark3 suggests, if you don't like his work, don't read it. I've changed the way I browse SA so I can avoid certain highly biased authors.
    22 Dec 2013, 10:56 PM Reply Like
  • flabingo1
    , contributor
    Comments (81) | Send Message
     
    By not responding you hit him in the pocketbook
    Bravo
    23 Dec 2013, 12:08 AM Reply Like
  • Anonymous Wizard
    , contributor
    Comments (986) | Send Message
     
    We will be busting thru $600 before long and certainly by 2nd week of January prior to earnings which should be the highest quarterly earnings EVER ! Games can only be played for so long on wallstreet but Company performance ultimately wins out. All Longs are Winners !
    22 Dec 2013, 06:02 PM Reply Like
  • chopchop0
    , contributor
    Comments (3125) | Send Message
     
    "While China Mobile's giant subscriber base and retail reach translate into a major growth opportunity, its low ARPU and the popularity of cheap and large Android phones in China will act as headwinds. Whereas the iPhone 5C starts at an unsubsidized price of ~$735 in China, app analytics firm Umeng estimates Chinese Android phone sales carry an average unsubsidized price of just $233."

     

    More than 3x the price. This is going to be such a non-event.
    22 Dec 2013, 06:14 PM Reply Like
  • kolizacr@yahoo.com
    , contributor
    Comments (216) | Send Message
     
    If you keep saying it to yourself so many times, I am sure you will believe it.
    Ask Michael Blair
    22 Dec 2013, 07:33 PM Reply Like
  • chopchop0
    , contributor
    Comments (3125) | Send Message
     
    "If you keep saying it to yourself so many times, I am sure you will believe it."

     

    I don't believe in vapor moat "one trick pony" stocks like AAPL.

     

    I believe in "take no prisoners" real moat stocks like V and MA (either of which would school AAPL head to head), that don't depend on selling overpriced, shiny gear to the masses.
    22 Dec 2013, 09:42 PM Reply Like
  • AllgoodGuy
    , contributor
    Comments (235) | Send Message
     
    You are assuming one thing, that is the culture of China is one of thriftiness. Living just south of them in Thailand, I can tell you they are not as thrifty as you believe. These are the same people who are the world's largest consumer of gold products and one of the largest societies of people who like to put on an air of wealth. They are more likely to trip over each other to get their hands on these products.
    22 Dec 2013, 10:30 PM Reply Like
  • aardvark3
    , contributor
    Comments (335) | Send Message
     
    Chop, get over it.
    22 Dec 2013, 10:33 PM Reply Like
  • chopchop0
    , contributor
    Comments (3125) | Send Message
     
    "Chop, get over it."

     

    Aardvark3, get over what? It's amazing how one-sided AAPL posters can be on this forum. No room for debate it seems.
    22 Dec 2013, 11:39 PM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    Chinese are certainly richer than Koreans, even in America.
    23 Dec 2013, 12:56 AM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Maybe the top 1%
    23 Dec 2013, 07:04 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4514) | Send Message
     
    AAPL trades north of $600 in '14 with a PT of $650..
    My comments from Sept '13

     

    http://seekingalpha.co...
    22 Dec 2013, 06:19 PM Reply Like
  • gpo344
    , contributor
    Comments (44) | Send Message
     
    My guess is up between 10 and 20 tomorrow.
    22 Dec 2013, 06:32 PM Reply Like
  • Gary J
    , contributor
    Comments (3549) | Send Message
     
    Way to go out on a limb
    24 Dec 2013, 07:22 AM Reply Like
  • VAWhiz
    , contributor
    Comments (32) | Send Message
     
    Back up the trucks!
    22 Dec 2013, 06:34 PM Reply Like
  • tmoney094
    , contributor
    Comments (155) | Send Message
     
    I pity the people who sold last week because there was no China Mobile deal announced…….not.
    22 Dec 2013, 06:35 PM Reply Like
  • wbricky
    , contributor
    Comments (40) | Send Message
     
    I am so happy that I took the opportunity and bought more on the dip a few days ago.
    23 Dec 2013, 12:17 AM Reply Like
  • iOS7 needs to revolutinize
    , contributor
    Comments (74) | Send Message
     
    Lets see if the market sells this news :)
    22 Dec 2013, 06:45 PM Reply Like
  • UnStopaBull!
    , contributor
    Comments (165) | Send Message
     
    Yeah the 5$ gain was a few weeks ago, be happy if it stays above 525. :)
    22 Dec 2013, 07:07 PM Reply Like
  • scott trader
    , contributor
    Comments (4514) | Send Message
     
    @humble........Probably lower....
    22 Dec 2013, 06:58 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    Well, I bought some more out of the money calls for the 3rd thinking they would raise guidance, so that pretty much guarantees it will go down regardless of the news! Sorry longs.
    22 Dec 2013, 07:29 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    The only question is.......
    how many chinese are rich enough to afford the iphone, and how many are poor, but would spend a year's salary to be a poser ?
    22 Dec 2013, 07:17 PM Reply Like
  • brilliantblue99
    , contributor
    Comments (78) | Send Message
     
    No one knows. I strongly believe aapl share price will be around 700 end of nxt yr
    22 Dec 2013, 07:26 PM Reply Like
  • Marc Freeman
    , contributor
    Comments (62) | Send Message
     
    Been to China. Lots of rich people.
    22 Dec 2013, 07:37 PM Reply Like
  • Holty57
    , contributor
    Comments (2) | Send Message
     
    In response to your statement , China Mobile has 750m subscribers... If their income is only $800 a year as you insinuate... what are they doing with any cell phone? All luxury high end retailers / manufactures are jumping into China. Why? To grab the poor people's money? NOT. China has a huge wealthy population. Don't fight it , China M deal is going to be huge
    22 Dec 2013, 08:32 PM Reply Like
  • Matt-Man
    , contributor
    Comments (516) | Send Message
     
    BMW expects to sell more cars in China this year compared to USA, there is some indication
    22 Dec 2013, 08:34 PM Reply Like
  • Matt-Man
    , contributor
    Comments (516) | Send Message
     
    Asian style is different as well on spending:
    'Chen Zhi-Heng earns about $36,000 a year working as a doctor in Changsha, a city in south-central China. Even though she earns far above average, she doesn't consider herself well-off enough to be middle class.
    With roughly $800 free each month to spend on discretionary items, she owns a $4,700 Gucci watch, a $1,600 Burberry coat and a $320 Hermes silk scarf.'

     

    http://cnnmon.ie/19lerqm

     

    Largest city population earns >12k$ per year on average and there plenty of people on those cities.
    I earn much more but would not buy such an expensive watch.
    22 Dec 2013, 09:04 PM Reply Like
  • ispank
    , contributor
    Comments (534) | Send Message
     
    Yup, That is Chinese mentality, brand name, brand name stuffs for social status.
    22 Dec 2013, 10:26 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    http://cnn.it/1cg2nFA
    Teachers are paid about 10,000 yuan a month ($1,640), which makes them solidly middle-class in Shanghai.
    22 Dec 2013, 10:57 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    There are more people in China who can afford an iPhone than there are Americans who can afford one. Ben Thompson has a great chart illustrating why/ how.

     

    http://bit.ly/1bjhn4d

     

    Suffice to say that if you have 2 billion people, 10-20% is a very large number.
    22 Dec 2013, 11:03 PM Reply Like
  • wbricky
    , contributor
    Comments (40) | Send Message
     
    People living in the cities are making more than US$1000 a month. China PCI is $6000 ranking 87 in the world (wiki) Are you living in the 80s? Please check your fact before making this kind of comment.
    23 Dec 2013, 12:23 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    "she doesn't consider herself well-off enough to be middle class."

     

    She obviously is consuming too much. An American export disease.
    23 Dec 2013, 12:29 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    $6k is per capita per year. that 10k RMB/month is a teacher's monthly earnings.

     

    if you check the article I copied it from is a vice-principal from a top Beijing high school.

     

    He ought to know the cost of living as Shanghai and Beijing are similar, as I last lived in Beijing last year and am in Shanghai now.
    23 Dec 2013, 12:34 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    China is already Apple's 2nd-largest market after the US. Apple got $25 bil. in revenue from China last year and this year it'll go up to $35-$45 bil, where it'll be almost as high as Apple's US revenues at $50 bil. Tim Cook said China would soon overtake the US as Apple's #1 market, and this certainly seems to be true just over the next 2-3 years, if not sooner.
    23 Dec 2013, 01:01 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    More Rolls Royce's, Ferraris, Lamborghinis, too. Mostly for this reason, 我正在学中文。
    23 Dec 2013, 01:10 AM Reply Like
  • Marc Freeman
    , contributor
    Comments (62) | Send Message
     
    Been to China. Lots of rich people. Heck the leadership wears Armani Suits!
    22 Dec 2013, 07:38 PM Reply Like
  • dmarilley
    , contributor
    Comments (570) | Send Message
     
    Oh boy.
    23 Dec 2013, 04:01 AM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    They both get what they want, though shrunk.
    22 Dec 2013, 07:42 PM Reply Like
  • Keyser Smith Jones Soze
    , contributor
    Comments (97) | Send Message
     
    This deal is widely misrepresented. The near-term effect will be modest in comparison to NTT DoCoMo. The CHL deal means sustained, significant growth for Apple for at least a decade, probably more.
    22 Dec 2013, 08:30 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (4057) | Send Message
     
    Exactly, CM first needs to build out its 4G network in more cities, this will take time. In contrast, Docomo's 4G network is already built out.

     

    Also, this deal was widely rumored for weeks, it will be interesting to see if it really moves AAPL a lot. Maybe there could even be some sell the news...
    22 Dec 2013, 09:22 PM Reply Like
  • Matt-Man
    , contributor
    Comments (516) | Send Message
     
    They have been able to attract 45million 2G greymarket devices with Edge speed. 5S/5C allow quite a wide 3G TDSCDMA coverage, big improvement on 2G data speed.

     

    22 Dec 2013, 11:04 PM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    Prior to today's China Mobile iPhone announcement, Counterpoint Research had reported recently that Apple moved up to 3rd place from 6th place in China with market share now of 12% due to the new iPhones being sold on China Unicom and China Telecom (Samsung is still 1st with 17% market share due mostly to its lower-priced phones). With China Mobile now in the bag, Counterpoint says Apple can attain 1st place by February, which is even more surprising since it sells only high-end phones. Importantly, the lack of phone number portability in China across carriers is no longer a barrier now to China Mobile customers who've wanted iPhones all along; they can keep their old number AND get the new iPhones.
    23 Dec 2013, 01:19 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    Zip:

     

    The contract situation is not the same in Cn as in the USA. In fact a friend last month showed off to me his IPhone 4-series.

     

    There are few restrictions or contract obligations in Cn. Most who buy the latest and greatest use the China Unicom 3g/GSM network because it is easy to slip in a SIM card.

     

    Unless Cn Mobile has some huge incentives, this is probably a non-event.

     

    The 3 Cn telecom monopolies cover the whole nation with the 2 intl and Cn's 3g network.

     

    By the way I'm a Cn Mobile 2.5g subscriber.
    23 Dec 2013, 01:42 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    There is no phone number portability in China so, for example, a China Mobile user who moves to China Telecom or China Unicom can't take his phone number with him, at least not without significant hurdles. People with a 163 China Mobile number, in particular, don't want to lose their phone numbers because such numbers were the earliest available and indicate you were a rich dude from the earliest days of the mobile era who could afford a phone from back when almost no one had them. Here's a quote from one article about the issue which also says China's MIIT won't allow for number portability until 2015:

     

    "'I'm a China Mobile (0941.HK; NYSE: CHL) subscriber, and will openly admit that I have resisted changing to faster and more reliable service offered by the country's other two telcos due to hassles related to switching my phone number. Many of my local and foreign friends feel the same way, a reality that has helped China Mobile to retain its position as the nation's dominant carrier these last three years despite its inferior 3G mobile service." -- http://bit.ly/JjnvzB
    23 Dec 2013, 02:43 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    Most cell phone owners use more than one phone. I'm sure that is true with Smartphones also.
    23 Dec 2013, 02:59 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    Well, the issue is number portability. As far as that issue is concerned, I'm sure carrying around one phone that retains your 163 number AND gets 4G iPhone service is a simpler solution than carrying multiple phones around everywhere you go and paying multiple phone bills.
    23 Dec 2013, 03:24 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    When I get an LTE phone it will be on, most probably Cn Unicom for its into GSM-std, so I can buy the phone far cheaper in the USA then in Cn or HK.

     

    Most of my friends have changed their original phone numbers, mainly due to too much junk SMSes.
    23 Dec 2013, 03:35 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    At any rate, China Mobile users don't have to change their numbers now since China Mobile itself will offer the iPhone. Junk messages affect China Unicom too.
    23 Dec 2013, 03:44 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    Again consider many of the people earning enough to buy an IPhone already have bought one.

     

    At least in the intermediate-term AAPL will be overvalued.

     

    Remember TD-LTE is not intentional, so unless the SIM is removable ...

     

    That is why Cn Telecom is stuck with its fixed-SIM QCOM wireless offerings (I am thinking of also getting an LTE-USB attachment simply because of the less crowded network and assuming superiority).

     

    BUT I have not heard of any superior 3g service, so maybe I'll stick with Cn Unicom for LTE (won't be that much cheaper though).
    23 Dec 2013, 03:44 AM Reply Like
  • vyfoo
    , contributor
    Comments (2) | Send Message
     
    Well done! Apple 5S Gold is to become a status symbol in China, something equivalent to Mercedes Benz or BMW.
    22 Dec 2013, 08:33 PM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    It's fake gold, not gold.
    23 Dec 2013, 07:01 AM Reply Like
  • Bobcat9
    , contributor
    Comments (148) | Send Message
     
    Of course this gets announced today... I had call options that expired yesterday that I held on to I hopes that it might come.

     

    Oh well... They made a little money. Thank goodness for the LEAPS I have tucked away.
    22 Dec 2013, 08:39 PM Reply Like
  • Alex Cho
    , contributor
    Comments (1573) | Send Message
     
    About time....
    22 Dec 2013, 09:00 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (3766) | Send Message
     
    I see a pop to $600 , very much a possibility, After all, no one knew for sure if this deal would ever be consummated or not.
    22 Dec 2013, 09:00 PM Reply Like
  • jamesmarash
    , contributor
    Comments (10) | Send Message
     
    there ought to be a massive shift from lesser iphones and androids to the new iphones. chinese are very status conscious, and they look down on the koreans. when given a legitimate choice, they will choose the iphone if they can muster up the yuans. it is estimated that 10% of chm subscribers are of the upper class and can easily afford the unsubsidized price. it is this upper class that is the most status conscious. assume, conservatively, that 75 million can pony up the yuan, and at the margin another 5%. that totals @110 million new natural buyers, and they will not be patiently standing in line. there will be a massive crush to acquire the iphone, and apple's manufacturing base in china will be hard pressed to keep up with the demand. to borrow a phrase from americana, and adapt it to the asian modernity, it will be an iphone or bust!
    22 Dec 2013, 09:01 PM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    The Koreans feel threatened by the Chinese and look down on them for a variety of ridiculous reasons, but at the end of the day it boils down to they feel threatened by China's catching up to and overtaking Korea on all of its major industries from smartphones to consumer electronics in general to chips to cars and ships. But capitalism is capitalism and Korea has enjoyed a multi-decade run fed by low wages that are no longer low, but now Korea's birthrate is the world's lowest, the population ages the fastest, there are fewer people to fill the rows upon rows of apartments, school buildings grow empty, the army can't fill its draft quota, and the only growth industry left is resentment at China for stealing their thunder and being the next E. Asian economic miracle to rise while theirs fades. 50% of Korea's economy depends on exports, so a downfall was inevitable when wages rose after several decades. The population and domestic economy were always too small to survive without exports, so there's nowhere for Koreans to go except emigrate.

     

    With the increased hostility by Koreans toward Chinese, Chinese will respond in kind in the same way the NTT Docomo customers are starting to do by avoiding Samsung phones and buying American.
    23 Dec 2013, 01:34 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    For clarification, Docomo is in Japan.
    23 Dec 2013, 01:49 AM Reply Like
  • Zipper0
    , contributor
    Comments (314) | Send Message
     
    Yes, China Mobile will probably play out like Docomo did in Japan: cause a price war among the carriers that causes iPhone share to surge. NY Times says China Mobile caved to Apple because it was losing customers to China Unicom and China Telecom. China Mobile's pricing will probably be zero upfront cost like Docomo's. And Chinese already don't like Koreans anymore than Japanese like Koreans.
    23 Dec 2013, 02:25 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    http://bit.ly/19HEXYY

     

    will likely give Apple Inc.AAPL +0.84% a boost. But it’s not clear how much of a leg up China Mobile can get.

     

    While the deal may help China Mobile expand its 4G user base, analysts remain skeptical about how positive it will be for its earnings, due to expected subsidies for selling 4G smartphones such as iPhones on top of its hefty investment in 4G network expansion.

     

    From Apple’s perspective, China Mobile’s impact on iPhone sales will likely depend on several factors, such as how much the phones will cost with contracts and what kind of deals on data usage and other terms China Mobile is willing to offer to attract users.
    23 Dec 2013, 02:30 AM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Did you know that the no.1 smartphone brand in China, Samsung, is actually Korean and that the Korean president Park Geun-Hye is quite China friendly? Or do you base your assumption on the occasional articles about Korea in the Wall Street Journal? I guess the latter
    23 Dec 2013, 07:00 AM Reply Like
  • Azazello
    , contributor
    Comments (607) | Send Message
     
    "quite China friendly" is to say "the president is working really hard to put the memory of the Korean War behind in economically different times rallying the country behind more loving and fuzzy feelings towards China as it is now a market opportunity so why to sustain festering resentments about communist China's once interventionist policy to erupt civil war in Korea—nah, the president is quite China friendly" you NYT and WSJ and New Yorker reading minions mislead by your manipulative, misguided media.

     

    hko2012 the champion of truth, goodwill and fairness
    5 Jan, 05:11 AM Reply Like
  • Booyakasha
    , contributor
    Comments (4) | Send Message
     
    What do people think this means for CHL shares?
    22 Dec 2013, 09:02 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    China Mobile opened up close to 1.5% higher in HK, but it has since sold off some and is up a little over 1%. AAPL is different, but interesting none the less.
    22 Dec 2013, 09:02 PM Reply Like
  • sunworshipper
    , contributor
    Comments (66) | Send Message
     
    Breaking news on CNBC. Apple china mobile just announced . Go Long apple and stay long because January is the strongest seasonal month for Apple.
    According to gregthatcher's analysis, January is the best month to buy AAPL and so is the 1Q.

     

    http://bit.ly/1jxavaa
    22 Dec 2013, 09:03 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1296) | Send Message
     
    Sun, I'm with you, but isn't he saying December is the best month to sell, and Jan is the best to buy? I think this year is different, but we would be selling Apple and buying it back in a month if history worked all the time, right?
    22 Dec 2013, 09:09 PM Reply Like
  • sunworshipper
    , contributor
    Comments (66) | Send Message
     
    No if you read the full details it says that seasonally it is best to buy and hold AAPL in Jan because historically it tends to be weak in January so you get it cheap after all the Dec longs have taken profit.
    22 Dec 2013, 09:37 PM Reply Like
  • rsykes73
    , contributor
    Comments (24) | Send Message
     
    Listen, this is the most important fact that everyone is missing...Apple's next quarterly report is... ON MY BIRTHDAY, oh, how great is that!! So, a release on the 19th, earnings on the 23rd...I see a slow steady build in price until then capped by shots of people waiting in line in China, and then rally into anticipation of earnings...then a sell off?
    22 Dec 2013, 10:29 PM Reply Like
  • matvox
    , contributor
    Comments (49) | Send Message
     
    Yes, and it's quarterly report after that is on my birthday!!
    22 Dec 2013, 11:04 PM Reply Like
  • 215304
    , contributor
    Comments (604) | Send Message
     
    I think Apple has learned some things from the last few months that will help them in China. Most importantly, they need to massively increase production/availability of the gold iPhone 5S as it will be the big seller in China. They need to have as many as possible in hand at China Mobile stores and Apple's Chinese stores on 17 January. I don't think they want to have a lot of folks walking out the door without phones. The sale of iPhones at China Mobile should also result in stronger sales of iPads and Apple computers as more Chinese enter the Apple ecosystem. China Mobile will benefit as this should stem defections to China Unicom and China Telecom. All in all, this was a great agreement for both Apple and China Mobile, hopefully the stock action will reflect that.
    22 Dec 2013, 09:22 PM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Chinese don't like fake gold.
    23 Dec 2013, 06:57 AM Reply Like
  • consultnick
    , contributor
    Comments (183) | Send Message
     
    Prepare for STOCK PUNISHMENT! It would be vastly out of character for AAPL's share price to increase on good news! We have been here before--for over a year, EVERY good news item--such as the intro of the 5S & 5C will cause at least a temporary crash, and the stock only lifts on the wings of delusion anyway. The only longs are clearly very under-informed and under-educated lemmings. They are uncreative dolts, especially lacking understanding of supply and demand, and only buy the stock for capital loss potential, in which they revel.

     

    All bad news hasn't been factored in by the "fanboys" and APPLSlaves, so the valuation is inflated; cash is a liability and a deflating asset; innovation died 40 years ago as Steve Jobs reached puberty; Blair and Trainer have their ears to God's lips--who wants AAPL punished for it's hubris--hence price the shares heading to $25; there is already a Samsung GALACTIC SUPER WHIZZ-BANG in every purse and pocket anyway--for 10 times APPL's margin; Obama wants APPL punished for bein' a rich persons fetish object; Chinese prison labor assembles the new phones, and those unfed prisoners work naked standing in cold water for 21 hours a day; there is no CHL deal anyway, and the last person in Asia to buy an iPhone was executed in North Korea.

     

    Even if APPL gains access to the Chinese market, thereby making it available to 750,000,000 customers, it is definitely time to short, because if every one of them bought an iPhone, that would represent such a huge portion of the world market that there is no more growth potential! So that's really bad! And if everyone had access to iTunes, there isn't enough Chinese music to go around. And although there are maybe 650,000 apps available, only 1% of the Chinese customers would be able to use them--so short that too. In short--there is no good news--so short! Especially important to hit the eject button now--before Icahn dumps his shares, along with the entire mutual and hedge fund industries.

     

    Tomorrow will begin the awful implosion, so you better jump out in the pre-market--and go back to bed!

     

    I'm going shopping.
    22 Dec 2013, 09:25 PM Reply Like
  • The Sceptic
    , contributor
    Comments (58) | Send Message
     
    I am a Fanboy & AAPL Bull but I agree with the AAPL mantra - buy on speculation & sell on news. There might be some selling in a couple of days after it goes up first.
    22 Dec 2013, 10:31 PM Reply Like
  • benfromchicago2689
    , contributor
    Comments (60) | Send Message
     
    Thank you, consultnick. I can't stop laughing. You basically summarize what all the naysayer have been babbling for the last 2 years since Jobs died.

     

    Tim Cook is not Steve Jobs. No one in the tech industry is. Cook doesn't pretend to be Jobs. However, he is doing a fine job managing a huge moneymaker known as Apple.
    23 Dec 2013, 12:12 AM Reply Like
  • sunworshipper
    , contributor
    Comments (66) | Send Message
     
    Consultnick: according to Wall St estimates the china mobile deal will add $2-4 to the EPS. Multiply that by a PE of 11 and you will get a pop of $22 -$44.
    22 Dec 2013, 09:43 PM Reply Like
  • bwjr17
    , contributor
    Comments (9) | Send Message
     
    $620 by year end
    22 Dec 2013, 10:35 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8816) | Send Message
     
    Uhh...so, you all think this hasn't been priced in multiple times over at this point?

     

    This is a non-event.
    22 Dec 2013, 10:35 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1151) | Send Message
     
    Never underestimate the enthusiasm of retail...I see shoeshine boys walking around...
    22 Dec 2013, 11:18 PM Reply Like
  • Vitalogy80
    , contributor
    Comments (32) | Send Message
     
    It won't be priced in for another year, when we actually know how many China Mobile iPhones have sold in a year...right now it's all guess work.

     

    But are you saying Apple will close below Fridays close tomorrow?
    22 Dec 2013, 11:30 PM Reply Like
  • leopardtrader
    , contributor
    Comments (860) | Send Message
     
    How can you say such a thing...or just trying to sound smart ? $AAPL had under performed this market both in short and medium term...so what do u call priced in here? Beyond logic in my opinion
    22 Dec 2013, 11:45 PM Reply Like
  • viking vancouver
    , contributor
    Comments (18) | Send Message
     
    I don't think this event has been fully priced in. The primary reason is most analysts had discussed what a China Mobile deal MAY do to top and bottom line. Now that the deal is official they will officially increase their earnings projections for 2014 and 2015. Positive momentum will continue to build and the stock price will continue higher due to improving earnings.
    22 Dec 2013, 11:58 PM Reply Like
  • PJBrown
    , contributor
    Comments (5) | Send Message
     
    Well if this is a non event, then do you recall your previous article on this storyline? Why was a lack of a China Mobile deal an event enough for you to pen an article and forecast AAPL testing support at $ 518?

     

    It is not whether this is priced in or not but rather that AAPL becomes more of a growth story in 2014 leading to multiple expansion.

     

    AAPL should get a nice boost going into Santa's rally and intto earnings.
    23 Dec 2013, 12:08 AM Reply Like
  • see punjabi
    , contributor
    Comments (351) | Send Message
     
    non-event for people who didn't own aapl now and what a bear thesis. Keep dreaming about non-event.
    23 Dec 2013, 12:37 AM Reply Like
  • weiliudai
    , contributor
    Comments (41) | Send Message
     
    No, Wall Street never likes uncertainties. The Officially announced deal is very different from the rumored one. To you it might be a non-event, it is an event to the market.
    23 Dec 2013, 12:48 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    AAPL will be overvalued, as the CHL deal is overhyped (for Apple, less so for Cn Mobile in the long run).

     

    Ignorance is bliss, except when it hits the wallet!
    23 Dec 2013, 01:48 AM Reply Like
  • faramarz
    , contributor
    Comments (240) | Send Message
     
    Ashraf. I sens immense frustration in your coment especially after your last article about this issue. Aren't you tired of being wrong. By the way, are you still waiting the low 300s to get in ?
    23 Dec 2013, 05:49 AM Reply Like
  • Piero A.
    , contributor
    Comments (333) | Send Message
     
    So much for your non-event nonsense. Stick to your analysis of Intel along with your buddy MB.
    23 Dec 2013, 07:12 AM Reply Like
  • dbt01
    , contributor
    Comments (371) | Send Message
     
    so glad I don't listen to you. In fact I bought more last week after the deal did not get announced
    23 Dec 2013, 07:19 AM Reply Like
  • initechprogrammer
    , contributor
    Comments (11) | Send Message
     
    The nonevent has moved the stock 3% in premarket trading.
    23 Dec 2013, 07:23 AM Reply Like
  • edsasaran
    , contributor
    Comments (7) | Send Message
     
    I don't think it has been priced in. Apple's rise of late can be credited to the success of the 5S, launch of ibeacons, iPad Air, and shifts in sentiments by analysts & bloggers. I'll agree that there is too much exuberance on this thread. My guess, & I don't know anything, is that the market will respond excitedly but will settle after a 3% rise. I can't imagine any way we'll see $44.00 tomorrow. This is still great news if you're long.
    23 Dec 2013, 07:49 AM Reply Like
  • Gary J
    , contributor
    Comments (3549) | Send Message
     
    I think you better check pre-market lol
    23 Dec 2013, 08:20 AM Reply Like
  • aardvark3
    , contributor
    Comments (335) | Send Message
     
    Up 3.5% premarket is a non-event? For YOU, maybe.
    23 Dec 2013, 08:39 AM Reply Like
  • Bobcat9
    , contributor
    Comments (148) | Send Message
     
    Given that much of the run-up (since the WSJ article prematurely announced the AAPL-CHL deal was done) had been given back, then I would say the answer to your question is "No, at least not entirely."

     

    The fact that AAPL opened almost 3% higher would seem to support that opinion. Unless you think something else can be credited for that pop.

     

    Now the question is if and when AAPL can break through the resistance level that exists around $575.
    23 Dec 2013, 09:42 AM Reply Like
  • JG2000
    , contributor
    Comments (379) | Send Message
     
    Partially priced in is NOT the same as fully priced in. I think many large funds are still sitting on the fence about reentering AAPL; this could be [and should be] an important catalyst.
    23 Dec 2013, 10:02 AM Reply Like
  • chopchop0
    , contributor
    Comments (3125) | Send Message
     
    "Up 3.5% premarket is a non-event? For YOU, maybe."

     

    It's already bleeding out the gains and it's not even noon yet. Btw, it only popped back up to where it was earlier this month.
    23 Dec 2013, 10:03 AM Reply Like
  • Gary J
    , contributor
    Comments (3549) | Send Message
     
    People dissing 3% gains in a day. Must be a market top!! Or maybe just clueless. lol
    23 Dec 2013, 11:43 AM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    And... Back to within a few dollars of the 52 week high it set a couple weeks ago.

     

    We'll see if there is a sell off through the rest of the week. It's the holiday so weird week.
    23 Dec 2013, 04:52 PM Reply Like
  • bgold1955
    , contributor
    Comments (1938) | Send Message
     
    "Uhh...so, you all think this hasn't been priced in multiple times over at this point?

     

    This is a non-event."

     

    Uhh...yes, it is a big deal, up >$21.

     

    Remember $434..........
    23 Dec 2013, 05:37 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8816) | Send Message
     
    All of the gains appear to have been given back. Perhaps you should wait to see if the trend is sustained before piling on :-)

     

    Cheers, gentlemen!
    -AE
    5 Jan, 10:01 AM Reply Like
  • wigit5
    , contributor
    Comments (3928) | Send Message
     
    it looks like china estimates are trying to be very conservative but the danger is they end up being right or even less...

     

    Honestly a bit concerned about my Feb Calls, if China Mobile sales don't beat estimates significantly I think we go back to 520-525$.
    5 Jan, 11:37 AM Reply Like
  • Bobcat9
    , contributor
    Comments (148) | Send Message
     
    Fair point, but that argument cuts both ways. It's a bit early to declare victory for the bearish case as well.

     

    It appears that a couple early reports suggest the CHL deal has been very underwhelming for AAPL as far as pre-orders for the iphone have gone... and it is likely one of a few factors impacting the stock's recent slide. (There have been a few reports that have been MUCH more bullish, but those seem to have been largely ignored; that does not mean they are wrong).

     

    IF the first official release of CHL iphone sales suggest the impact of the deal IS likely to deliver 12-20MM units in 2014, then that factor WILL have a materially positive impact on the stock and will prove the CHL deal is NOT priced in; certainly not "fully", and (at this point) maybe not at all.
    5 Jan, 11:44 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    IPhone has very few current buyers. Most bought now are either older models or current models which are not handicapped and join China Unicom EU 3g.

     

    As mentioned before, the Chinese government is the ultimate winner as users will eventually migrate to TD-LTE.
    5 Jan, 11:55 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8816) | Send Message
     
    "Fair point, but that argument cuts both ways. It's a bit early to declare victory for the bearish case as well."

     

    I wasn't the one launching the personal attacks. I simply voiced my opinion that CHL deal was priced in and that opportunity may not be as large as thought.

     

    Cheers,
    AE
    5 Jan, 12:49 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    Sorry I wrote in not exactly complete clauses, the IPhone models have typically not been bought in mainland China, maybe Hong Kong though, because pre-IPhone 5s there was no LTE.

     

    The current models were typically bought by the traveled who buy it abroad, though Apple also for the IPAD states that USA-bought "IP"s will not be fixed in China.

     

    Still save close to US$150 in HK, and travel was not a problem then ...

     

    those use similar EU-3g or EU-LTE studs, which ought to be coming out by March (as Cn Telecom told me a couple of days ago, That is treated the same as Cn Unicom, and Cn Mobile the richest comes out earlier as it had to adopt the mainland's std-- I'm still haven't confirmed whether the TD-LTE is a removable SIM as it was told to me some Cn Mobile 4g have or haven't removable SIM cards).

     

    Also I have no idea what the on contract IPhone 5s is because the Cn Mobile outlets I do go to tell me to go elsewhere and because I don't have a Cn ID, I can't access the online presale (but it should be much more generous terms than Cn Telecom's reduction of only 900 RMB with a 2 year 180 RMB min set usage/subscription /month).

     

    Again this CHL/AAPL deal is most helping the CCP's homegrown std global adoption (no respect for HTC, Samsung, etc) ...

     

    #2 Cn Mobile because eventually users will go to Cn Mobile for the IPhone and the Apple ecosystem.

     

    #3 Apple because its Apple and if it only gets 2% CHL (new/existing) users that is 15 million (closer to the most pessimistic estimation)!!

     

    I will stay different by buying a Lumia/Moto (Nexus).

     

    A friend was shocked earlier today that I didn't have an IPhone to go "hookup on" Wechat (bad word to use on a sister, especially a married wife in church).

     

    Just like the thief who turned down the victim's flip-phone, 8 years ago pickpockets would steal my under 2k RMB Nokias (8.3:$1), but no one cares to steal my IPOD touch.
    5 Jan, 01:22 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1076) | Send Message
     
    It's really impossible to say what's "priced in" or not at this point. Only after we get some idea of how CHL deal is going to affect earnings will we see the real impact. Apple's share price bobs around like a cork in a sea of uncertainty as analysts spew out random guesses about the impact.

     

    My bet is the share price keeps bobbing around for a bit then creeps until after the 17th when journalists all hold their breath, count the number of pre-orders run to their supplier checks, and invent BS metrics to placate the masses until the earnings announcement a week later contradicts all their garbage.
    6 Jan, 04:46 AM Reply Like
  • masterconi
    , contributor
    Comments (8) | Send Message
     
    greeeeeaaaaat! congratz to the bulls who waited and stayed focused!
    22 Dec 2013, 10:36 PM Reply Like
  • rmr100
    , contributor
    Comment (1) | Send Message
     
    I'm long but did anyone hear "sell the news"?
    22 Dec 2013, 10:36 PM Reply Like
  • djcodeman
    , contributor
    Comments (3) | Send Message
     
    awesome news! AAPL 600 coming!
    22 Dec 2013, 10:38 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (99) | Send Message
     
    Analysts and Wall Street seem to have fallen out of love with apple... So I guess we will have to wait for the sales to prove themselves, one thing for sure it's not going to reduce profits.
    22 Dec 2013, 10:39 PM Reply Like
  • flabingo1
    , contributor
    Comments (81) | Send Message
     
    Google went up $100.00 with much less positive news in one day.
    I hope Apple bought a lot of stock this week.
    Imagine what will happen when they invest their excess cash above .02 percent. Tim Cook is still COO, but hopefully they will figure out how to use their capital to get leverage. Imagine Jeff Bezos with all that cash? WOW
    22 Dec 2013, 10:56 PM Reply Like
  • portatopia
    , contributor
    Comments (517) | Send Message
     
    Bezos will just spend the cash, selling iPhones, iPads, Macs at cost and call them investments.
    22 Dec 2013, 11:33 PM Reply Like
  • masterconi
    , contributor
    Comments (8) | Send Message
     
    maaaaan finally! aapl going to $600! thank you very much and congratz to the bulls who stayed focused! hehe
    22 Dec 2013, 11:17 PM Reply Like
  • Moderation
    , contributor
    Comments (196) | Send Message
     
    Jeff Bezos run the world's largest non-profit. If he had more cash, he'd expand more and sell more things to more people at cost or below. When he is selling everything to all consumers at a loss, I'm sure the stock will quadruple.

     

    In what way does Apple need leverage? As far as I can see, the biggest problem Apple has is production, as in can they make enough units to fill the incredible demand for its products. That's where it's nice to have Tim Cook, who's one of the better supply chain CEOs in the world.
    22 Dec 2013, 11:41 PM Reply Like
  • dmarilley
    , contributor
    Comments (570) | Send Message
     
    The Kindle HDX cell would sell in China, with super retinal resolution and attached customer support speaking Mandarin, imagine that.
    23 Dec 2013, 03:57 AM Reply Like
  • raymondinperth
    , contributor
    Comments (78) | Send Message
     
    Buy on rumors sell on fact

     

    AAPL PE has already baked in this factor .

     

    Analysts will soon be disappointed about iPhone 5s preorder number .

     

    AAPL no surprise will dive to $510 .
    23 Dec 2013, 12:07 AM Reply Like
  • Tonella
    , contributor
    Comment (1) | Send Message
     
    Yes! Finally! Woo Hoo!
    23 Dec 2013, 12:07 AM Reply Like
  • Hope128
    , contributor
    Comments (105) | Send Message
     
    If market acts crazy and sell off AAPL after this terrific news, I will be there to write more puts or buy more calls.

     

    I have known China well, first there are many more riches than most American can image, and the number are growing rapidly year after year. 2nd China Mobile will spend more money on subsidies in 2014 after $4.4B spent this year. AAPL/CM is not one time deal, it will benefit both companies long term.
    23 Dec 2013, 12:08 AM Reply Like
  • dmarilley
    , contributor
    Comments (570) | Send Message
     
    Is imaging riches like taking pictures of platinum bars?
    23 Dec 2013, 03:54 AM Reply Like
  • masterconi
    , contributor
    Comments (8) | Send Message
     
    maaaaan finally! aapl going to $600! thank you very much and congratz to the bulls who stayed focused! hehe
    23 Dec 2013, 12:10 AM Reply Like
  • jimbay
    , contributor
    Comments (2) | Send Message
     
    Merry Christmas to all patient AAPL holders!
    23 Dec 2013, 12:10 AM Reply Like
  • medic126
    , contributor
    Comments (2) | Send Message
     
    Great Job AAPL!!!!!
    23 Dec 2013, 12:10 AM Reply Like
  • medic126
    , contributor
    Comments (2) | Send Message
     
    Great Job Apple !!
    23 Dec 2013, 12:11 AM Reply Like
  • meshu
    , contributor
    Comment (1) | Send Message
     
    Hang on! 1,000.00 by end 2014.
    23 Dec 2013, 12:11 AM Reply Like
  • flabingo1
    , contributor
    Comments (81) | Send Message
     
    Carl Icahn is not crazy. Buyback will be an event. China does matter. The wild card is the financial management which is not known
    23 Dec 2013, 12:23 AM Reply Like
  • dmarilley
    , contributor
    Comments (570) | Send Message
     
    Anyone who thinks this is news better have someone else managing his or her money.
    23 Dec 2013, 03:52 AM Reply Like
  • SILVERSHARK110
    , contributor
    Comments (23) | Send Message
     
    Congratulation! God Bless The King AAPL
    23 Dec 2013, 04:06 AM Reply Like
  • dbt01
    , contributor
    Comments (371) | Send Message
     
    I guess the big news is it works on the entire network, not just 4G. This should increase the sales to 50M units in 2014
    23 Dec 2013, 06:47 AM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Apple gave in to China Mobile's terms after China Mobile screwed Apple in December
    23 Dec 2013, 06:52 AM Reply Like
  • dbt01
    , contributor
    Comments (371) | Send Message
     
    Or is it the other way around? CM lost subscribers and caved in to Apple?
    23 Dec 2013, 07:18 AM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    How big was Apple's China market share again?
    23 Dec 2013, 09:18 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    Apple is all the rage here (I think IPhone is #2 or #3). Not Xiaomi, Oppo, Samsung, Lenovo ...

     

    No matter how old one's iPhone 4 is it is a respectable and sought after purchase.

     

    http://bit.ly/19W0cGu
    5 Jan, 10:36 AM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    The market is reacting as if Apple now starts selling iphones in China for the first time.
    23 Dec 2013, 07:12 AM Reply Like
  • gless3940
    , contributor
    Comments (8) | Send Message
     
    Apple is up premarket and will go down all day probably closing close to unchanged or slightly lower
    23 Dec 2013, 07:23 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4514) | Send Message
     
    Gless,
    since AAPL is up 3.4% in pre market can we assume u will be shorting at the open ??

     

    The readership would like to know...

     

    Its' really very simple !
    Long AAPL

     

    http://seekingalpha.co...
    23 Dec 2013, 09:11 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4514) | Send Message
     
    A few more "shorts" were carried out in boxes today
    23 Dec 2013, 05:35 PM Reply Like
  • chongkim74
    , contributor
    Comments (628) | Send Message
     
    Its true...this news was baked in a while back. The subsidy/price point issue and android issue will be the counter...I agree with peeps who said without QE and est. sales results, it will be difficult to hit 600.
    At least it finally hit the damn deal. It was blue balls for several years.
    23 Dec 2013, 08:46 AM Reply Like
  • ewmpsi
    , contributor
    Comments (1410) | Send Message
     
    A few things to consider:

     

    1) It is not a coincidence that China Mobile smoothed the path for a deal with Apple to coincide with the arrival of 4G TD-LTE rollouts. China Mobile saved their dry powder (AAPL) for when it was most valuable. The venerable iPhone will help promote their new wireless offerings. China is all about China, China Mobile is run by the government and it will drive business to Xiaomi Tech, ZTE and Huawei handset OEMs. Sure there will be a “pop” in sales after the launch but once the cork is off of the champagne and the bubbles fizzle out, Apple will have a fight on its hands. The iPhone will drum-up business for the new 4G homegrown network, that Chinese handset OEMs want to sell into, they will undercut the crap out-of the iPhone, yes, it will be a price war.

     

    2) The iPhone was already available and the demand in a 2G (3G is spotty) network has been satisfied, therefore this is bullish if you believe that there is a consumer base that want’s the iPhone in a homegrown 4G TD-LTE configuration in China. You may want to check out the structure of those plans before you start counting eggs. The 4G TD-LTE will be a new animal for the consumer and their iPhone experience, and this iPhone will be specifically for that use, so this means we are also bullish of the use of that broadband product (China’s 4G TD-LTE). If so, who will be the other competitors on that broadband product and what are their offerings?

     

    3) Size matters, for those that think that Apple goes screaming toward $1000/share, it is important to understand that this is a different company now. It is a large part of the U.S. stock market and it is not a rocket-stock. If it were to jump 30% in a session (as some of the high beta / momentum names) it would be met with massive selling by institutions who need to rebalance as the weighting of their fund dictates. The broad market and Apple itself would be short-sell candidates. We would have massive volatility and the markets would be unstable if Apple traded that way. Apple will have orderly advances/declines of .5% to 3%...even on great or awful news. This means a march toward $1000 a share could take a long time…which is prudent.

     

    However, many things could happen between now and $1000/share. I believe $1000/share for Apple was a better speculative trade than a hard investment. Now that we have the China Mobile deal, it becomes show and prove, we’ve already seen how grossly unrealistic analyst can be concerning Apple. They cook up insane numbers and create never ending goal post moves that make hyperbole more important than fundamentals.

     

    Apple is the world’s greatest retail story as a work of non-fiction. Unfortunately, investors have bought into Wall Street’s sci-fi adventure story instead. Yes, Apple is grossly underpriced, but Wall Street can continue to grossly miss-represent Apple and play both sides.
    23 Dec 2013, 12:22 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    "China Mobile is run by the government "

     

    All Cn's telecoms are run by the govt!
    23 Dec 2013, 05:12 PM Reply Like
  • ystock15
    , contributor
    Comments (169) | Send Message
     
    Agreed that APPL is grossly underpriced and will hit $1,000/share just like Google will be more market-adequte price for APPL Ha!
    23 Dec 2013, 05:45 PM Reply Like
  • ewmpsi
    , contributor
    Comments (1410) | Send Message
     
    "All Cn's telecoms are run by the govt!"

     

    Yes, they are...and thus all working for the good of China, not a negative for Apple but certainly not a gimme either.
    23 Dec 2013, 06:54 PM Reply Like
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