China Telecom to offer fully-subsidized iPhone 4S starting March 9

Posted:
in AAPL Investors edited January 2014


China's third-largest wireless operator has announced that it will begin offering Apple's iPhone 4S in mainland China on March 9, breaking up rival China Unicom's exclusive claim to the iPhone in the country.



China Telecom announced the news in a statement on its website on Tuesday, as noted by Bloomberg. Online preorders for the device will begin on March 2.



"We are very pleased to provide our customers with the outstanding new iPhone 4S. We believe that our customers will be pleasantly surprised by the iPhone 4S on China Telecom's high-quality 3G network," said China Telecom deputy general manager Yang Xiaowei.



Apple commented on the launch by providing The Loop with a statement. "iPhone 4S has been an incredible hit with customers around the world," spokesperson Natalie Harrison said. “We’re thrilled to be launching iPhone 4S with China Telecom and can’t wait to get it into the hands of even more customers in China.”



The carrier is offering the 16GB iPhone 4S for free with the signing of a two-year contract for a monthly plan starting at 389RMB ($62), slightly more than China Unicom's 386RMB plan. The China Telecom data plan, however, offers more data and voice minutes and less text messages than its rival's comparable packages. A fully-subsidized 16GB iPhone 4S can be had for as low as 289RMB ($46) with a three-year contract.



China Telecom revealed last month that it had begun "preparatory work" for the iPhone 4S launch and said it hoped to release the device by late February or early March. The carrier operates a CDMA2000 network that required minor tweaks to the iPhone 4S to support it. Chinese regulatory documents revealed in January that the China Telecom iPhone 4S has its own model number.





China Telecom's plans for iPhone 4S







Morgan Stanley analyst Katy Huberty predicted last month that the arrival of the iPhone on China Telecom could bring incremental sales of between two to four million iPhones next year. The carrier is estimated to have 15 million high-end subscribers that pay more than 100RMB ($16) a month for wireless service. As of November 2011, China Telecom had a total of 117 million subscribers, 28 million of which made use of the company's 3G service.



Demand for the iPhone 4S in China has been heavy. On the eve of the device's official launch in China last month, crowds became so large and uncooperative that Apple was forced to cancel the retail launch of the device. The company began taking orders on its Chinese online store earlier this month. Apple is selling the unlocked iPhone 4S starting at 4,988RMB ($792).





Remnants of the crowd outside the Sanlitun Apple Store in Beijing early on Friday, Jan. 13.







The advent of iPhone sales on China Telecom will leave China Mobile, the world's largest wireless carrier with 655 million subscribers, as the only operator in the country to not carry the iPhone. Huberty believes China Mobile could sell between 24 and 36 million iPhones in 2013. She expects the carrier won't get the iPhone until the next generation of the handset arrives later this year.



[ View article on AppleInsider ]

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Comments

  • patranuspatranus Posts: 366member
    And the march towards $600 continues.
  • solipsismxsolipsismx Posts: 19,566member
    So there is the iPhone 4S for many countries in fiscal Q1-2012, then for China Unicom in Q2-2012, and then for China Telecom just before Q3-2012. Sounds like Apple has their growth rate spaced out nicely. I expect even more sales than the holiday quarter topping out at around 40-42 million units.
  • lighteningkidlighteningkid Posts: 361member
    Just in time to also offer iPad roaming plans?
  • secular investorsecular investor Posts: 205member
    Quote:
    Originally Posted by SolipsismX View Post


    So there is the iPhone 4S for many countries in fiscal Q1-2012, then for China Unicom in Q2-2012, and then for China Telecom just before Q3-2012. Sounds like Apple has their growth rate spaced out nicely. I expect even more sales than the holiday quarter topping out at around 40-42 million units.



    This HUGE, HUGE NEWS.



    Apple could double their iPhone market share in China overnight!



    Especially as China Telecom is offering a FREE iPhone 4S with a two year contracts - that's even better the the 3GS for free in the US.



    It will be huge competition for China Mobile, who will have to start selling iPhones soon or start haemorrhaging subscribers to China Unicom and China Telecom.
  • freshmakerfreshmaker Posts: 457member
    Quote:
    Originally Posted by Secular Investor View Post


    This HUGE, HUGE NEWS.



    Apple could double their iPhone market share in China overnight!



    Especially as China Telecom is offering a FREE iPhone 4S with a two year contracts - that's even better the the 3GS for free in the US.



    It will be huge competition for China Mobile, who will have to start selling iPhones soon or start haemorrhaging subscribers to China Unicom and China Telecom.



    Yeah, this news is fantastic. Just what Apple needs. I was shocked to read that Apple had actually lost market share in China last quarter. \ http://bit.ly/wkXBZX
  • godzillagodzilla Posts: 156member
    This is HUGE!!!!



    And there's still so, sooooo much room for them in China. iPhone is still in a very infantile state out there.
  • cameronjcameronj Posts: 2,357member
    Edit: bad math
  • shadowxprshadowxpr Posts: 162member
    Well the first trillion dollar company is made in Asia, apple will do it in 2012-2013...
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by ShAdOwXPR View Post


    Well the first trillion dollar company is made in Asia, apple will do it in 2012-2013...



    That's more than doubling the stock price. Maybe 2013 but I would bet against that happening in 2012.



    edit: Shares will have to top $1072.54 for Apple's market cap to be valued at $1 trillion.
  • secular investorsecular investor Posts: 205member
    Quote:
    Originally Posted by Freshmaker View Post


    Yeah, this news is fantastic. Just what Apple needs. I was shocked to read that Apple had actually lost market share in China last quarter. \ http://bit.ly/wkXBZX



    Don't forget that Apple also lost Market Share in the US in the quarter before the release of the iPhone 4s, which was followed by a massive leap in market share in the quarter it was released.



    The same will happen in China
  • tooltalktooltalk Posts: 766member
    Quote:
    Originally Posted by Secular Investor View Post


    Don't forget that Apple also lost Market Share in the US in the quarter before the release of the iPhone 4s, which was followed by a massive leap in market share in the quarter it was released.



    The same will happen in China



    But Apple was still #1 in smartphone market share and its sales bounced back big time in the 4Q outselling Samsung.



    Apple is #5 in China and lost market share for two consecutive quarters Q3 & Q4.
  • godzillagodzilla Posts: 156member
    Quote:
    Originally Posted by tooltalk View Post


    But Apple was still #1 in smartphone market share and its sales bounced back big time in the 4Q outselling Samsung.



    Apple is #5 in China and lost market share for two consecutive quarters Q3 & Q4.



    The reasons are spelled out for you. Not only were they featured on a boutique wireless carrier exclusively, but the previous Quarter was before the iPhone 4S launch in China.



    Even now, with this great news, they still are just signed up with two carriers, the best of them being just the 3rd largest in China.



    Again, in their infantile state. This is great news, as it means that the growth opportunity in China is massive, and that they haven't even begun to reach a fraction of their potential if all goes well for them.



    Clearly, the buzz, fanaticism of their great products and culture, etc. exist greatly in China, as you can see by the anticipation and events that occurred when the 4S was released.



    On top of all this, more Apple Stores are being built in China, will be built, etc. As an Article I read once said: "If you want to Invest in China's growth, then Invest in Apple".
  • secular investorsecular investor Posts: 205member
    Quote:
    Originally Posted by tooltalk View Post


    But Apple was still #1 in smartphone market share and its sales bounced back big time in the 4Q outselling Samsung.



    Apple is #5 in China and lost market share for two consecutive quarters Q3 & Q4.



    I presume you are talking of calendar Q3 and Q4 2011?



    In which case Apple lost market share in Q3 in the US, because of all the media chatter about the new iPhone, and then leapt in market share in Q4, when the new iPhone became available.



    If the iPhone lost market share in China, it was for the same reasons as the US. But in Q4 (unlike in the US) the iPhone 4S was still not available in China, so it kept losing market share while buyers held back waiting for the new iPhone.



    In Calendar Q1 2012 the iPhone 4s is being released in China and its market share will leap just as it has everywhere else that the iPhone 4S was released.



    China Telecom will more or less double demand and availability to subscribers for the iPhone 4S.
  • simtubsimtub Posts: 276member
    Steve Jobs and Team created an awesome device. Absolutely profound!
  • SpamSandwichSpamSandwich Posts: 24,945member
    I thought the deal with China Unicom was never an exclusive. Poor word choice on the part of the author here?
  • secular investorsecular investor Posts: 205member
    Quote:
    Originally Posted by SpamSandwich View Post


    I thought the deal with China Unicom was never an exclusive. Poor word choice on the part of the author here?



    Sometimes Apple grants an exclusive for a limited time, as with AT&T in the US.



    But I don't know what the case was with Unicom.
  • secular investorsecular investor Posts: 205member
    Quote:
    Originally Posted by ShAdOwXPR View Post


    Well the first trillion dollar company is made in Asia,



    Which Asian company was that?
  • tallest skiltallest skil Posts: 40,530member
    Quote:
    Originally Posted by Secular Investor View Post


    Which Asian company was that?



    Some Chinese oil company, I think? But that claim is heavily disputed.
  • macbook promacbook pro Posts: 1,605member
    Quote:
    Originally Posted by Secular Investor View Post


    Which Asian company was that?



    The company is PetroChina which surpassed USD $1.2 trillion on the first day of public trading in 2007.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by Secular Investor View Post


    Which Asian company was that?



    Note that it should be qualified with "publicly traded" since there is at least one private company that is thought to be worth well over $1 trillion.
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