Apple may be closer to deal with China Mobile to sell iPhone
SAN FRANCISCO — Apple may be inching closer to a deal with China Mobile, that nation’s largest carrier, to sell the iPhone. But whether it’s absolutely final or not remains unclear.
Late Wednesday, the Wall Street Journal said a source had indicated that a deal would be announced Dec. 18 at a China Mobile conference. But Thursday, a Reuters article disputed that, saying talks were ongoing.
“We are still negotiating with Apple, but for now we have nothing new to announce,” China Mobile spokeswoman Rainie Lei told Reuters.
Analysts have pointed to a deal with China Mobile as a way for Apple to jump-start its growth rate, which started to slow this year.
Such a deal would give Apple access to China Mobile’s more than 700 million customers for the first time. Though analysts have been predicting such a deal was close for months now, most have not factored the effect of such a deal into their estimates for the company’s current fiscal year, which ends September 2014.
“China consumers appear to us to have a deep admiration for Apple’s products, and we believe China Mobile will also benefit from this deal,” Brian White, a Cantor Fitzgerald analyst, wrote in a note to clients on Thursday.
China has become one of Apple’s biggest smartphone markets, but Apple has also seen its market share slip there a bit this year, as the iPhone remained available from only some of the smaller carriers in that country.
In a note to clients Thursday, Gene Munster, a Piper Jaffray analyst, said China Mobile iPhone sales could add as much as 5% to Apple’s revenue in the current fiscal year.
Apple shares rose $2.90, or less than 1%, to 567.90 in trading Thursday.
Twitter: @obrien
