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China Mobile denies iPhone deal, insists talks ongoing

post #1 of 57
Thread Starter 
China Mobile denies inking a deal with Apple, throwing cold water on reports claiming the two companies finally reached a partnership agreement that would see the iPhone offered to carrier's 740 million subscribers.

Suzhou


Word of the deal first emerged in the Wall Street Journal late Wednesday, but a followup report from CNNMoney just hours later refuted the "insider information" with a statement from a China Mobile saying nothing had been signed, but instead that negotiations were "in progress."

Reuters later corroborated the development, with a statement from China Mobile spokeswoman Rainie Lei saying that the carrier is "still negotiating with Apple, but for now we [China Mobile] have nothing new to announce."

Despite the uncertainty surrounding its consummation, it is widely believed that a deal between the two companies is imminent. Previous reports have indicated that the iPhone's appearance on China Mobile's network was being held back until the introduction of the carrier's 4G TD-LTE network, an event that should take place in mid-December now that China's telecommunications regulator has signed off on the launch.
Despite the false start, a China Mobile deal is believed to be imminent.
Additional evidence pointing to a December introduction has accumulated in recent weeks. China's state-run Xinhua News Agency reported in late November that both China Mobile's 4G network activation and the iPhone launch would take place on Dec. 18.

Further, on Monday, a China Mobile subsidiary in the mainland city of Suzhou, near Shanghai, rolled out a web-based reservations system for Apple's handset, though the page was withdrawn.

Analysts believe that an agreement with China Mobile could be a major new revenue driver for Apple. Amit Daryanani of RBC Capital Markets and Gene Munster of Piper Jaffray both predict that the arrangement could result in an additional $10 billion in revenue on sales of 17 million iPhones in calendar 2014.
post #2 of 57
Wow. One thing that's become clear through this whole story. Doing deals with China Mobile must be a complete nightmare. Good on Apple for focusing on the long game.
post #3 of 57
So, WSJ got it wrong, and the analysts got it right.

Pity though, I really was looking forward to this, and the mind boggling numbers resulting from it. Oh well, maybe next year.
post #4 of 57
Quote:
Originally Posted by PhilBoogie View Post

So, WSJ got it wrong, and the analysts got it right.

Pity though, I really was looking forward to this, and the mind boggling numbers resulting from it. Oh well, maybe next year.

It simply means that the Chinese are pulling their traditional dick moves right up til the last minute. It will happen soon enough.

post #5 of 57

This is a little misleading. 

 

A deal could be signed, and for legal, marketing, and other reasons, both firms are not admitting the deal. 

 

Did everyone ALREADY forget about PrimeSense less than a month ago? One day it was denied by PrimeSense then, just days later, it was confirmed...

 

Here's a slightly more grounded theory: Both firms are publicly traded, and (in the US) Securities regulations, such as Reg FD, require that "material information be disclosed to all investors at the same time". Hence, the secret nature of these negotiations. 

Note that China Mobile didn't say "No", they said "ongoing" and "Nothing to announce right now". 

 

If I was China Mobile and scheduled a huge event around my 4G announcement, I wouldn't want to spoil it by giving up a secret before the date. If I was Apple, I wouldn't want to screw my partner and announce something before their big day. 

Expect Tim Cook on the dias with CM Chairman on Dec 18 - which, will be one hell of a Christmas gift to all investors. 

post #6 of 57
Quote:
Originally Posted by ForThought View Post

This is a little misleading. 

A deal could be signed, and for legal, marketing, and other reasons, both firms are not admitting the deal. 

Did everyone ALREADY forget about PrimeSense less than a month ago? One day it was denied by PrimeSense then, just days later, it was confirmed...

Here's a slightly more grounded theory: Both firms are publicly traded, and (in the US) Securities regulations, such as Reg FD, require that "material information be disclosed to all investors at the same time". Hence, the secret nature of these negotiations. 
Note that China Mobile didn't say "No", they said "ongoing" and "Nothing to announce right now". 

If I was China Mobile and scheduled a huge event around my 4G announcement, I wouldn't want to spoil it by giving up a secret before the date. If I was Apple, I wouldn't want to screw my partner and announce something before their big day. 
Expect Tim Cook on the dias with CM Chairman on Dec 18 - which, will be one hell of a Christmas gift to all investors. 

If the deal not announce on 18th, how much can aapl drop ? Nightmare for Apple investors ?

If the deal really inked , china mobile can always say " we decline to comment . " or if they want to announce TOGETHER , China mobile can always say " we will have announcement later "
post #7 of 57

My guess: The WSJ just got played by China. This is China's way of trying to put pressure on Apple to take its deal or suffer the consequences of a drop in stock price if the deal falls through.

 

My advice to Apple: Screw 'em. If the stock price drops, then that's more cheap stock for Apple to salt away with its stock buyback program. And right now, Apple is barely keeping up with demand on its red-hot products, so they don't need them as a customer as much as CM needs Apple as a lure. Every day that goes by leading up to Chinese New Year is another day CM loses customers who want the iPhone to their competitors.

 

Edit: I have a considerable amount of my retirement capital in AAPL, so I'm speaking as a stockholder.

post #8 of 57
WSJ NEVER does Apple any favors in their reporting. They COULD have at least checked with Apple PR directly for a comment before they issued the consummation of the deal as being FACT, even though they admitted they had only one (anonymous) source instead of at least the normal two. Apple would have told them that there was nothing to announce. Instead WSJ wanted to jump the gun, and they got a false scoop. Problem is, this victimizes Apple as perhaps looking unorganized or overly anxious, especially in the popular Chinese perception and in the potential investor's mindset?
post #9 of 57
Quote:
Originally Posted by Sacto Joe View Post
 

My guess: The WSJ just got played by China. This is China's way of trying to put pressure on Apple to take its deal or suffer the consequences of a drop in stock price if the deal falls through.

 

My advice to Apple: Screw 'em. If the stock price drops, then that's more cheap stock for Apple to salt away with its stock buyback program. And right now, Apple is barely keeping up with demand on its red-hot products, so they don't need them as a customer as much as CM needs Apple as a lure. Every day that goes by leading up to Chinese New Year is another day CM loses customers who want the iPhone to their competitors.

 

Edit: I have a considerable amount of my retirement capital in AAPL, so I'm speaking as a stockholder.

 

I agree. Any deals that are harmful or not beneficial to Apple, don't sign them. Even for the biggest market in the world. Clearly, the black market for iPhones proves there is demand. Let the black market flourish and let customers in China punish China Mobile by leaving for a competitor.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #10 of 57
The WSJ. Don't. Believe. A. Word.

Worst newspaper ever.

Least professional. Least reliable.

Piece of crud WSJ.
post #11 of 57
Quote:
Originally Posted by 512ke View Post

The WSJ. Don't. Believe. A. Word.

Worst newspaper ever.

Least professional. Least reliable.

Piece of crud WSJ.

 

This may be a sometimes valid criticism, but it's more applicable to the New York Times.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #12 of 57

I personally believe the deal is done. 

post #13 of 57
Quote:
Originally Posted by SpankSandwich View Post

This may be a sometimes valid criticism, but it's more applicable to the New York Times.

NYT sometimes misses the mark but you have no idea what you're talking about
Ask me about.... The 80's!
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Ask me about.... The 80's!
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post #14 of 57
As far as I know, window displays and signs in china mobile stores all over mainland china are explicitly indicating the wait is over and iPhones are coming to china mobile. It does not seem to be that a well kept secret anyway and I am not sure what all the denials are about.
post #15 of 57
Originally Posted by george li View Post
As far as I know, window displays and signs in china mobile stores all over mainland china are explicitly indicating the wait is over and iPhones are coming to china mobile.

 

Really? Could you snap a few and upload them?

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #16 of 57
post #17 of 57
Btw, I did not snap those pictures as I am in US. But They are all over the web on Chinese tech blogs and online forums.
post #18 of 57

I'm sorry, I don't mean to rag against the WJS.  It's true they have misreported several big stories on Apple recently, but then so does every major newspaper.  It's, publish first, ask questions later.  Everybody wants to be first and get the clicks/reads/eyeballs.

 

This is so disappointing.  I really hope a deal is announced soon.  It sucks being an Apple investor.  When there is the slightest tremor of negativity, the stock goes way down.  And this isn't just a tremor.  China Mobile is an earthquake at least in terms of public perception!

 

C'mon Apple make it not only an iPad Christmas, but also an APPL Christmas.

 

That's what I want for Christmas, Santa!  APPL UP not APPL back down to 390.

 

I will leave cookies and milk!

post #19 of 57
Quote:
Originally Posted by george li View Post

Btw, I did not snap those pictures as I am in US. But They are all over the web on Chinese tech blogs and online forums.

Thanks, that's comforting to see.

post #20 of 57
Quote:
Originally Posted by PhilBoogie View Post

So, WSJ got it wrong, and the analysts got it right.

Pity though, I really was looking forward to this, and the mind boggling numbers resulting from it. Oh well, maybe next year.

Maybe the 18th December, like Apple they play their cards close to their chest.
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
Reply
post #21 of 57
Does Rupert Murdock, have any interest in WSJ? Anything is possible
post #22 of 57
Quote:
Word of the deal first emerged in the Wall Street Journal late Wednesday, but a followup report from CNNMoney just hours later refuted the "insider information" with a statement from a China Mobile saying nothing had been signed, but instead that negotiations were "in progress."
Nothing was signed but hands were shook.
The deal is done. The rest is just formalities.
post #23 of 57
Quote:
Originally Posted by 512ke View Post
C'mon Apple make it not only an iPad Christmas, but also an APPL Christmas.

That's what I want for Christmas, Santa!  APPL UP not APPL back down to 390.


Not an actual investor, I see.
post #24 of 57
I'd rather have AAPL over $600 for Christmas...
post #25 of 57
ah, as a lowly common folk, no investor, wtf do I care.
post #26 of 57
Has China Mobile also denied the Xinhua News Agency report?
post #27 of 57
China !Mobile looks like a good match: just as determined as Apple in controlling their own news.
post #28 of 57
Quote:
Originally Posted by vaporland View Post

NYT sometimes misses the mark but you have no idea what you're talking about

Two words: mike daisy.
post #29 of 57
Quote:
Originally Posted by jungmark View Post
 
Quote:
Originally Posted by vaporland View Post

NYT sometimes misses the mark but you have no idea what you're talking about

Two words: mike daisy.

Daisy was a walk in the park compared to Judith Miller and Jayson Blair.

post #30 of 57
From what I know about Chinese culture he may be saying this to "save face"
post #31 of 57
Given the huge take off of the iPhone 5s in Japan, China mobile
has to be anxious to get this deal done but in classic Asian fashion feels
obliged to horse trade to the end. Apple, my friends is in the cat bird seat here.
Actually kind of fun watching China Mobile squirm and twist knowing they are against the
wall, needing to consummate this deal by the Dec 18th network announcement for full effect. Stick it to them Tim.......
post #32 of 57
Quote:
Originally Posted by GQB View Post
 

It simply means that the Chinese are pulling their traditional dick moves right up til the last minute. It will happen soon enough.

Why is this blatantly racist rant allowed to stay on this site?

 

Why is no one else calling this racist out for this?

 

Shame on all of you.

post #33 of 57
ForThought is exactly right. If cornered by the press, officials of both CM and Apple can only say no comment or negotiations ongoing until an official announcement. There is a lot of circumstantial evidence for Dec. 18 and as a long time Apple watcher, I am 80% certain it is Dec 18.

To SactoJoe, I would strongly presume that Apple has built up an inventory for CM for launch behind the scenes.
post #34 of 57
Originally Posted by StruckPaper View Post
Why is this blatantly racist rant allowed to stay on this site? Why is no one else calling this racist out for this?

 

Be…cause it isn’t? 

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #35 of 57
Quote:
Originally Posted by Tallest Skil View Post

Be…cause it isn’t? 

We'll replace Chinese with a "protected" minority group.
post #36 of 57

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #37 of 57
Quote:
Originally Posted by Tallest Skil View Post

Be…cause it isn’t? 

I've personally been in enough negotiations with Chinese suppliers to know exactly what the person was talking about. There are consultants that can be hired by companies who do nothing but negotiate with Chinese suppliers.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #38 of 57
Quote:
Originally Posted by StruckPaper View Post
Why is this blatantly racist rant allowed to stay on this site?

 

Why is no one else calling this racist out for this? Shame on all of you.


I seemed to have missed the racist part.
Wait, I get it. You are one of those on the far left leaning who can't win an argument so you simply call the other side racist.
You've never had to make deals with Chinese companies.
Obviously, you are the racist as you seem to think that they should be the same as you. To pretend that there are no differences in cultures & attitudes is racist.

Edited by Chris_CA - 12/7/13 at 9:15am
post #39 of 57
Quote:
Originally Posted by Jared Porter View Post

WSJ NEVER does Apple any favors in their reporting. They COULD have at least checked with Apple PR directly for a comment before they issued the consummation of the deal as being FACT, even though they admitted they had only one (anonymous) source instead of at least the normal two. Apple would have told them that there was nothing to announce. Instead WSJ wanted to jump the gun, and they got a false scoop. Problem is, this victimizes Apple as perhaps looking unorganized or overly anxious, especially in the popular Chinese perception and in the potential investor's mindset?

 

Apple PR isn't going to say anything until there's an official announcement, because they can't. Generally the WSJ has pretty reliable sources. My guess is that someone at China Mobile jumped the gun and told a WSJ reporter there was a deal. My guess is that there is a deal in principle, but they are still hammering out the final details such as exactly how many China Mobile will commit to buy and how much they will subsidize it.

post #40 of 57
Quote:
Originally Posted by Chris_CA View Post
 
Quote:
Originally Posted by StruckPaper View Post
Why is this blatantly racist rant allowed to stay on this site?

 

 

Why is no one else calling this racist out for this? Shame on all of you.


I seemed to have missed the racist part.
Wait, I get it. You are one of those on the far left leaning who can't win an argument so you simply call the other side racist.
You've never had to make deals with Chinese companies.
Obviously, you are the racist as you seem to think that they should be the same as you. To pretend that there are no differences in cultures & attitudes is racist.

 

What a fucking joke?

 

So you're saying that it's the province of an open-minded person to rant about what he perceives to be real stereotype of a racial group. If you think it's true, then it's ok to say whatever, right? 

 

In that case, why don't you go ahead and give us some example of what it is like to negotiate or hang out with Jews, Chinese, Koreans, African Americans, Russians and Italians. Go ahead, I dare you.

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