Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Is Apple's iPhone Finally Coming to China Mobile?


The major Chinese carrier does not yet officially offer Apple's smartphone, but a report from Reuters reveals that China Mobile and Apple are actively negotiating.

Editor's Note: This content was originally published on by Louis Bedigian.

Apple (NASDAQ:AAPL) and China Mobile (NYSE:CHL) may be on the cusp of an industry-changing agreement.

According to Reuters, China Mobile Chairman Xi Guohua told reporters that the company is "actively negotiating and both sides are keen."

"There are still some commercial and technology issues that need time to resolve," he said.

Those "commercial" issues could be App Store revenue.

In November 2011, reports claimed that while China Mobile wanted to add the iPhone to its lineup, it would not do so without a cut Apple's App Store revenue.

Apple has yet to grant anyone a piece of the App Store pie, so many wondered if a China Mobile deal would ever be possible.

Even without an official offering, China Mobile still acquired 10 million iPhone users by October 2011. This year, that number is likely much higher.

Since the carrier does not officially offer the device, consumers have been purchasing unlocked iPhones from other stores. This could inspire China Mobile to rethink its stance on App Store revenue.

China Mobile may also be persuaded by the low-cost iPhone, which is reportedly due for release alongside the iPhone 5S this fall. Both devices are expected to be unveiled on September 10.

Reuters also reported that the new iPhones will contain chips from Qualcomm (NASDAQ:QCOM) that will allow the handsets to operate on a greater number of networks. This includes China's "obscure" networks, which differ from those in most other nations.

By offering a worldly iPhone that is diverse enough to run on virtually any carrier, Apple could ultimately reduce its manufacturing expenses. The company may spend more initially, but this could prevent Apple from having to develop different iPhones for each market that it serves.

Many analysts believe that Apple must sign a deal with China Mobile, the world's largest mobile carrier, in order to grow. China Mobile currently serves more than 720 million customers -- up from 600 million just two years ago.

Below, find some more great ETF and market content from Benzinga:

JC Penney Shares Rally As New York Post Sees August Turnaround

If You Own Apple, You're Getting Paid Today!

'No One Wants to Build Electric Cars Other Than Tesla,' Says David Booth

Twitter: @Benzinga

Benzinga Pro covers this and all market news in real time. Get your free trial here.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos