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Apple CEO Tim Cook meets with China Mobile, world's largest carrier

post #1 of 41
Thread Starter 
While in China, Apple Chief Executive Tim Cook gave an interview with local media, in which he revealed that he met with China Mobile, the world's largest wireless carrier.

Cook declined to say in his interview with Sina Tech what came of his meeting. Rumors of the iPhone becoming available on China Mobile have persisted for years, but no deal has been struck yet.

A spokesman for China Mobile confirmed to CNBC that the talks took place, and said the two sides discussed "matters of cooperation." No further details were given, as a confidentiality agreement was reportedly signed.

Currently, the iPhone is available on carriers China Unicom and China Telecom. China Mobile's president confirmed a month ago that talks with Apple were ongoing, but a deal had not been reached.

Tim Cook


Analyst Amit Daryanani of RBC Capital Markets believes Apple could earn 13 percent of China Mobile's 75.6 million high-speed 3G subscribers. That doesn't include the nearly 700 million total subscribers the carrier has, some of which could switch to smartphone plans for the iPhone.

Daryanani predicted in November that a potential deal with China Mobile could add about $3 to Apple's annual earnings per share, and $45 to the company's stock price.

The number of 3G subscribers in China grew 88 percent year over year in 2012 to 222 million. China Mobile is the only major carrier in the country that does not have a deal for Apple's iPhone, which market watchers believe has helped to stifle the carrier's smartphone adoption rates.

Also while in China, Tim Cook visited an Apple reseller with marketing chief Phil Schiller. The two were spotted by AppleInsider reader Anthony while they spoke with the staff at Dragonstar, an Authorized Apple Reseller at China World Shopping Mall.
post #2 of 41
AAPL way up pre market. lol.gif Seems to me Cook's visit to China the same week as CES isn't a coincidence.
post #3 of 41
I think the rumored "low cost" iPhone (iPhone Mini) is going to be a major focus of the China Mobile deal.
post #4 of 41
Quote:
Originally Posted by blackbook View Post

I think the rumored "low cost" iPhone (iPhone Mini) is going to be a major focus of the China Mobile deal.


I don't think so. I think the major focus is whether China Mobile is going to subsidise iphones or not.

Because if they don't, that could really become a problem for apple because of the premium price they demand for the iphone and the fact that not many people are able or willing to spend so much money for a smartphone.


Edited by changeover - 1/10/13 at 7:34am
post #5 of 41
After the "coordinated" hammering in the press recently it would seem that a few funds wanted Apple down and are now starting to buy...?
post #6 of 41
Why can't these billionaires fix their TEETH!?

Apple increments product features one bite at a time...hence the logo. Want the next big thing? You're gonna have to pick another fruit from the Apple Tree.

Reply

Apple increments product features one bite at a time...hence the logo. Want the next big thing? You're gonna have to pick another fruit from the Apple Tree.

Reply
post #7 of 41
Can a Chinese language only low-end Apple iPhone cannibalize US sales?
post #8 of 41

When Apple are going to launch the next iPhone this coming summer or later. It will include, for the first time a Baseband and Amps that works with TDS-CDMA. The 3G standard currently being used in China Mobile.

 

It probably doesn't matter then whether China Mobile will provide iPhone with a price plan at lower subsidised cost. People will be rushing to buy the new iPhone anyway. Those who are already on the China Mobile Network would want to upgrade. Those are are still waiting for a China Mobile 3G compatible iPhone will also go to buy.

 

Assuming there is no design changes for iPhone5s, this is a good thing as the spike level for iPhone S is generally much lower then a redesign. China Mobile TDS-CDMA could help to push the demand higher then usual iPhone S level.

post #9 of 41
Originally Posted by changeover View Post
…that could really become a problem for apple because of the premium price they demand for the iPhone and the fact that not many people are able or not willing to spend so much money for a smartphone.

 

It's the best-selling phone on the planet. Why would you even say this nonsense?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #10 of 41
Quote:
Originally Posted by Tallest Skil View Post

 

It's the best-selling phone on the planet. Why would you even say this nonsense?

 

Because china is not like the west. And in china the spending capacity is probably not the same as in the US or Europe.

I'm guessing that most of the people in china are on a different level in the hierarchy of need (Maslow) so the focus might not be on a phone that you need to save money for months. This has nothing to do whether it's the best-selling phone on the planet.

China is not the planet. ..

post #11 of 41
Originally Posted by changeover View Post
Because china is not like the west.

 

They've been scarfing up the iPhone as it is…

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #12 of 41
Quote:
Originally Posted by Tallest Skil View Post

 

They've been scarfing up the iPhone as it is…


But not in the same relation as the west. And that's the only point I'm making.

Look at the iphone 5 first weekend sales numbers. They sold over five million the first weekend to US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK (together they have a population as about the same as china mobile has users... 700 million something)

The first weekend in china they sold over two million.

Twice as many people, half the sales.

 

My only point is this. The iphone 5 might be too expensive to the majority of chinese, if china mobile decides not to subsidise the iphone 5.

post #13 of 41
Originally Posted by changeover View Post
But not in the same relation as the west.

 

Because they're not on all the carriers!

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #14 of 41
Quote:
Originally Posted by Tallest Skil View Post

 

Because they're not on all the carriers!

And in said countries they are on all carriers? How about t-mobile?

 

China mobile already hosts many iphone subscribers. Just because they don't sell the phone doesn't mean you're not able to have one.

If they are on all carriers or not has nothing to do with the "population-sales" relation.

Especially not in china where, as I have read, it is not common to subsidise phones. If you pay full price either way you can buy an unlocked phone and choose the carrier afterwards.

post #15 of 41
Quote:
Originally Posted by changeover View Post


I don't think so. I think the major focus is whether China Mobile is going to subsidise iphones or not.

Because if they don't, that could really become a problem for apple because of the premium price they demand for the iphone and the fact that not many people are able or willing to spend so much money for a smartphone.

 

Are you kidding?  Just a couple of years ago, none of the Chinese carriers were subsidizing iPhone, and the 3G connection doesn't work, still there were millions of iPhones on their network.  The iPhone's price is not barrier to Chinese people.  It's true that not every Chinese can afford the full price iPhone, however, the small percentage of Chinese people that can is still a larger number than a lot of market's total population.

post #16 of 41

What are service costs in China? Remember the "cost" of a cellphone is a sum of the hardware and the service cost over the life of the phone: and the service cost is always the one that dwarfs the hardware: subsidy or not. So China Mobile deciding to pass on more of the hardware cost to it's customers might not move the dial all that much.

post #17 of 41
Service costs are quite low in China, unless you insist on gigabytes. A voice/SMS + 300 MB plan runs me about US$8 per month on China Unicom.
post #18 of 41
Quote:
Originally Posted by xsu View Post

 

Are you kidding?  Just a couple of years ago, none of the Chinese carriers were subsidizing iPhone, and the 3G connection doesn't work, still there were millions of iPhones on their network.  The iPhone's price is not barrier to Chinese people.  It's true that not every Chinese can afford the full price iPhone, however, the small percentage of Chinese people that can is still a larger number than a lot of market's total population.


Yes a small percentage of Chinese people is a large number of customers. That's the point. If apple would lower the price the more chinese would be able and willing to buy an iphone. One percent more people = 13 Millions of possible iphone sales. Even if you lower the margin for that, you would still make a whole lot of money.

It's not about market share and it's not about margins. It's about profit.

Why should apple not take advantage of this situation and make a cheaper product? Cheaper product = more customers. More customers = more profit even with lesser margins.

post #19 of 41
Quote:
Originally Posted by changeover View Post

And in said countries they are on all carriers? How about t-mobile?

 

China mobile already hosts many iphone subscribers. Just because they don't sell the phone doesn't mean you're not able to have one.

If they are on all carriers or not has nothing to do with the "population-sales" relation.

Especially not in china where, as I have read, it is not common to subsidise phones. If you pay full price either way you can buy an unlocked phone and choose the carrier afterwards.

Stop being obtuse. T-Mobile is a piddling carrier in the US. Apple is signed up with the major carriers in every market you mentioned.

 

In China, Apple still lacks the largest carrier, on top of which, 3G penetration is still only 10% - 20% of the market. If you look at (i) sales as a proportion of the addressable market, and (ii) the rapidly increasing availability of 3G, China could well end up as the single biggest market for iPhones in a few years. The growth opportunities are tremendous.

 

Let's check back in a couple of years, shall we?

post #20 of 41
Originally Posted by changeover View Post
If apple would lower the price the more chinese would be able and willing to buy an iphone.

 

Maybe Apple should make the iPhone free off-contract. Or maybe they should have a business model that works, since they'd not only lose billions, they couldn't make enough, destroying their reputation.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #21 of 41
Quote:
Originally Posted by anantksundaram View Post

Stop being obtuse. T-Mobile is a piddling carrier in the US. Apple is signed up with the major carriers in every market you mentioned.

 

In China, Apple still lacks the largest carrier, on top of which, 3G penetration is still only 10% - 20% of the market. If you look at (i) sales as a proportion of the addressable market, and (ii) the rapidly increasing availability of 3G, China could well end up as the single biggest market for iPhones in a few years. The growth opportunities are tremendous.

 

Let's check back in a couple of years, shall we?

 

Maybe tmobile isn't as big as AT&T or Verizon. But calling a company with over 30 million customers 'piddling' is questionable. So is calling me obtuse.

I totally agree on the growth opportunities China represents. I just think that the potential for Apple to grow in that market would be much bigger if either China Mobile subsidises the iphone or apple makes another less expensive one. That's all I said.

post #22 of 41
Quote:
Originally Posted by Tallest Skil View Post

 

Maybe Apple should make the iPhone free off-contract. Or maybe they should have a business model that works, since they'd not only lose billions, they couldn't make enough, destroying their reputation.

Maybe you should have read my whole post.

 

"It's not about market share and it's not about margins. It's about profit."

 

Giving the iphone away for free is not generating profit as we all know. So please stop acting like I said something like that. China has so many people that lessening the margin in order to reach more potential customers could work for Apple for their profit. That has nothing to do with selling your brand out with cheaper (plastic-toy) phones. Subsidized phones would be the easiest way to do this without even have the need to lessen the margins. And that's what I wrote in my first post.

 

If China Mobile isn't willing to subsidise the iPhone then Apple can go the way you suggest and have a relativly small percentage of the market (still much money though) or could create a new less expensive (but still awesome) phone or lessen the margin of the iphone 5 in order to get a little more percentage of the market in china.

 

It doesn't matter which way Apple will choose, they will do just fine.


Edited by changeover - 1/11/13 at 1:04am
post #23 of 41

Cheap vs 'Lower' cost are different things.

 

See the iPod line.

 

Which, as a creative way of juicing an mp3 player to customers got Apple 70% of the market.

 

Apple can do the 'same' or 'similar' with the iPhone line.

 

Siri shuffle iPhone.

Nano iPhone

Normal iPhone...

iPhone 5 incher.

 

There's plenty.  Each serving a different need.

 

If you look at the current Nano iPod and retina iPod...you've got two of the best engineered products out there.  The ret' iPod is even better than the iPhone 5 in my view.  It's very svelte. 

 

If Apple wants world domination...it's up to them.

 

When I look at what they did with the iPod line...I'm left wondering what's taking them so long to emulate the same process with the iPhone.

 

We didn't just have 'one iPod' did we?  Apple buried their competition comprehensively by squeezing the oxygen out of their competitors.

 

They can do that with iPhone.

 

'Cheap' or lower cost products addressing specific markets the iPhone 5 won't reach.

 

We've had this argument before.  Yet we have a Mac Mini for £499 (when no Mac would ever be under £1k...yadda...) and we have an iPad for £399 when they were going to got '1k+' and we have the iPad Mini (they'll never, never etc...)  Yet we have an 'iPad' for £260+ish or whatever...

 

There's plenty of space.

 

If Apple can't make 'cheaper' phones for a teen/ipod market, who else can?  Just put a radio / phone transmitter in the iPod ret' line and you've got the slickest, trendiest multicoloured phone out there.

 

Add a 5+ version for 'embarrassingly large' people fans and you'll choke Samedung to death.

 

Lemon Bon Bon.

You know, for a company that specializes in the video-graphics market, you'd think that they would offer top-of-the-line GPUs...

 

WITH THE NEW MAC PRO THEY FINALLY DID!  (But you bend over for it.)

Reply

You know, for a company that specializes in the video-graphics market, you'd think that they would offer top-of-the-line GPUs...

 

WITH THE NEW MAC PRO THEY FINALLY DID!  (But you bend over for it.)

Reply
post #24 of 41

post #25 of 41

Wow guys... so this is where the appleinsider-comedy Blog gets all its material from.

 

I got mailed the link and thought this was all made up, but you guys actually say this shit. There is an entire blog made out of your insane ramblings! Holy crap, you guys really are giving us a bad name in the world out there. 

post #26 of 41
Quote:
Originally Posted by JBlongz View Post

Why can't these billionaires fix their TEETH!?

Steve Jobs looked at him and saw the future of Apple.

You see bad teeth.

See the analogy?
post #27 of 41
Originally Posted by anantksundaram View Post
See the analogy?

 

He's vain and Cook was one of the main arteries for Apple's future success.

 

That's almost poetic.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #28 of 41
Quote:
Originally Posted by hwjunkie View Post

Wow guys... so this is where the appleinsider-comedy Blog gets all its material from.

I got mailed the link and thought this was all made up, but you guys actually say this shit. There is an entire blog made out of your insane ramblings! Holy crap, you guys really are giving us a bad name in the world out there. 

Link? I'd like to read it.
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post #29 of 41

Tim's visit in China just shows how much money are in the open for companies to grab. I also agree that once they break the ice properly in Asia, they are going to seriously bank. :)

post #30 of 41
Quote:
Originally Posted by PhilBoogie View Post


Link? I'd like to read it.

 

I got this from work a while ago. I saw a bunch of them around a workstation, literally laughing their asses off. Yes, asses were lying on the floor. So I wanted to know what this is about, and found this. They were reading quotes aloud and laughing... and I laughed too, but then slowly started realising, where these quotes were from... geeeeeez.... 

 

Worst thing about all this: there was one Andorid guy, and four iPhone guys in that group, and having a blast reading some of the truely sick things some of the fanatics say here. And I've been back to that blog, some of you here, and espacially one of the mods, is providing a neverending stream of pure comedy fun to non-overfanatically-involved normal human beings. And I just hate that. People were speaking highly of this forum, but I read here, that so many forum members hate the turn this place took. Just hateful, angry fanatics that sound like every bit of critique, or every bit of little success that takes place outside an apple word, equals forceful hurting their families or taking food out of their children's mouths. 

 

long introduction, I know, but that is how much the existance of such a webpage angers me (or that it actually can exist, due to some users here). 

 

http://stuff-appletards-say.blogspot.ch/

 

The are adding update after update... and according to my friends at work, this page already has a huge following. People just like comedy I guess.

post #31 of 41
Quote:
Originally Posted by hwjunkie View Post

Quote:
Originally Posted by PhilBoogie View Post

Link? I'd like to read it.

http://stuff-appletards-say.blogspot.ch/

Thank you. Not only for the link, but also your post. I agree that some people indeed come on very strong on blogs (not specifically here, but yes, here as well) and there isn't any need for that. We all ought to come together, as we're all in this, this what all connects us. Everything we do affects something, someone. Without wanting to turn this into a philosophical Kabbalah plea...

I think as a whole, this site provides useful posts. Also from mods, admins, but yes, unfortunately it also gets mixed with useless posts (also from me, though I do try to restrain myself). Sometimes it can get offensive, but that might be just at face value; sometimes it's just a way to express what somebody else might say, not necessarily what they think or mean to say. If a post comes across as "forceful hurting their families or taking food out of their children's mouths" then please remind yourself that it could also be written that way to try and make their point. A simple "you're an idiot, according to some' doesn't mean the poster thinks the other is an idiot - there's a world of difference if one understands how someone writes, not specifically what that person writes. Many geeky techies here, who think like SJ, in yes or no, black or white, 1 or 0.

Now, if you'll excuse me, I have a link to follow.

Thanks much.
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post #32 of 41
Originally Posted by hwjunkie View Post

…and especially one of the mods…

 

Hey, I think this one was one of mine!


"'Apple needs...'
-I don't recall a time when someone has said this and been right."

 

I stand by it. *shrug* It's the truth.


Originally Posted by PhilBoogie View Post
A simple "you're an idiot, according to some' doesn't mean the poster thinks the other is an idiot…

 

Exactly; I specifically said that afterward. Really, it should have been evident I didn't think that….

 

I like how they've posted this:


"Android already has 5 TIMES the market share of the iPhone. That's a huge disparity.
But like I said... Android's numbers look great on paper... but they aren't the clear winner by any means."

 

As though it isn't true. But I suppose a site that calls people "Appletards" isn't looking to be anything remotely close to impartial or intelligent.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #33 of 41
Funny to read a partial AI over that Google's Blogspot. I hoped there would be some sort of feedback as to why that site thinks a certain statement is incorrect or whatever in their view. But it looks like it's all Copy Paste. Which is fine for what it is, just expected it to give us something to talk about.

Yeah, that 'you're an idiot' thing; I think it was great. It is a thing so simple, yet not grasped by some I don't understand why I seem to get it and not others. One thing has to be said on that: the guy who reported that as offense was surprised that the report went straight to you, the original poster and was baffled by that. That, I do do understand, must've look completely stupid, considering you know.

Have a great Sunday! And keep the humor coming!
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post #34 of 41
Quote:
Originally Posted by hwjunkie View Post

long introduction, I know, but that is how much the existance of such a webpage angers me (or that it actually can exist, due to some users here). 

 

http://stuff-appletards-say.blogspot.ch/

Wow! I mean, how sad must this persons life be to spend so much time gathering quotes of something he clearly just doesn't like?

I mean appletards? C'mon man! If you don't have anything better to do, then you should totally get a life!

 

Quote:
Originally Posted by PhilBoogie View Post

Funny to read a partial AI over that Google's Blogspot. I hoped there would be some sort of feedback as to why that site thinks a certain statement is incorrect or whatever in their view. But it looks like it's all Copy Paste. Which is fine for what it is, just expected it to give us something to talk about.

 

Well, I can see that a lot of quotes in that blog are missing respect. Respect to competition (Samsung, Google, Microsoft) or respect to other people.

Quote:

"You can see, though, that Samsung knows their market. Narcissists with no taste, smart-ass nerds, plagiarists, people with no ethics, who in turn don't expect any from their "Providers" because they don't know what ethics are."
Quote:
"Crossing over to the Dark Side means selling youself to an advertising machine, thus loss of integrity, or evidence that you never had integrity. ("I don't mind if Google mines my data, look what I'm getting for free!") Not to mention getting intimate with forms of plastic and ungodly extrusions that no one of taste would ever associate with."

I mean really? Is this how we show discuss things? Getting another Phone than the iPhone is crossing over to the dark side and show lack of integrity and ethics?

 

Quote:
Originally Posted by Tallest Skil View Post

But I suppose a site that calls people "Appletards" isn't looking to be anything remotely close to impartial or intelligent.

Although I'm really new here, I want to point out, that this is probably the first time we agree.

post #35 of 41

Look at the new post. He knows that AI knows about the blog.

Quote:
It seems that  posts are getting deleted if they don't fit the common opinion. I don't have the posts, but if 'enature' reads this. Please put the post here as a comment.

 

Is it true that in this forum posts get deleted? That would be incredible!
enature?

Censorhip and Apple. They go hand in hand.

 

Quote:

Originally Posted by Tallest Skil View Post

 

 But I suppose a site that calls people "Appletards" isn't looking to be anything remotely close to impartial or intelligent.

Maybe he is not impartial or intelligent in your opinion. But he definitely shows that Applefans are not either. Look at the quotes.
Look how almost religious those quotes are. Apple is always right. Every other company always wrong or worse copying holy Apple.
Is this really how you want to be known outside this forum? Religious apple fanatics?

post #36 of 41
Originally Posted by hwjunkie View Post

Maybe he is not impartial or intelligent in your opinion. But he definitely shows that Applefans are not either. Look at the quotes.

Look how almost religious those quotes are. Apple is always right. Every other company always wrong or worse copying holy Apple.
Is this really how you want to be known outside this forum? Religious apple fanatics?

 

Yes, let's take things out of context and claim the group that said them has a characteristic. That has always worked wonders in the past. 

 

No, there are no quotes, ¡, or "/s" in the above two sentences. If you think I actually need them, then what you're pretending to believe makes sense.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #37 of 41
Quote:

Originally Posted by hwjunkie View Post

Maybe he is not impartial or intelligent in your opinion. But he definitely shows that Applefans are not either. Look at the quotes.

Look how almost religious those quotes are. Apple is always right. Every other company always wrong or worse copying holy Apple.
Is this really how you want to be known outside this forum? Religious apple fanatics?

Who cares if there are some 'religious apple fanatics'?

There are probably also 'religious android fanatics'.

You find that everywhere. So stop acting like it's a huge deal.

 

Success always generates haters...

post #38 of 41
Originally Posted by changeover View Post
There are probably also 'religious android fanatics'. You find that everywhere.

 

Mostly here.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #39 of 41
Aren't you a little too sensitive? Of course there are people who have the opposite opinion than you, but that's the point of having an online forun, isn't it? Discussions with people on both sides. If everyone had the same opinion it would be boring.
post #40 of 41
Originally Posted by changeover View Post
Aren't you a little too sensitive? Of course there are people who have the opposite opinion than you, but that's the point of having an online forun, isn't it? Discussions with people on both sides. If everyone had the same opinion it would be boring.

 

I love how they always out themselves.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
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