China Mobile denies iPhone deal, insists talks ongoing
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.
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.
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city of Suzhou, near Shanghai, rolled out a web-based reservations system for Apple's handset, though the page was withdrawn.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.
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.
Comments
Pity though, I really was looking forward to this, and the mind boggling numbers resulting from it. Oh well, maybe next year.
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.
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 "
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.
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.
Worst newspaper ever.
Least professional. Least reliable.
Piece of crud WSJ.
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.
I personally believe the deal is done.
NYT sometimes misses the mark but you have no idea what you're talking about
Really? Could you snap a few and upload them?
http://www.pconline.com.cn/images/html/viewpic_pconline.htm?http://img0.pconline.com.cn/pconline/1310/31/3734866_01383195190.jpg&channel=9356
http://www.pconline.com.cn/images/html/viewpic_pconline.htm?http://img0.pconline.com.cn/pconline/1310/31/3734866_Tech_Breakfast_20131101_01_02.jpg&channel=9356
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!
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.
Maybe the 18th December, like Apple they play their cards close to their chest.