China Mobile just posted its first profit decline in years, but Apple is not to blame. Of the carrier’s million-plus new mobile subscribers in February, about one million of them are iPhone users, reports The Wall Street Journal.
“We added 1.34 million new 4G users in February and most of them are iPhone users. We are happy with the progress as we are still building our 4G network and the coverage is only available in some major cities,” China Mobile Chairman Xi Gouhua told the Journal.
That’s certainly not bad news for Apple, but it’s a little lower than expected. Some analysts were anticipating yearly sales as high as 17 million units, which doesn’t look likely to happen at this point.
These lower-than-expected sales aren’t entirely surprising. After all, China’s “4G” network is still in its infancy, and the iPhone is an expensive device. It’s still possible for sales to pick up in the future, though, especially as 4G access spreads, and Apple’s access to the carrier’s 760 million subscribers is only a good thing.
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It’s just been getting started for one or two months. So far it’s hard to tell how that will affect our business [...]
We are happy with the progress as we are still building our 4G network and the coverage is only available in some major cities.
Analyst estimates of likely sales had varied widely. Most had predicted at least 15-17M sales a year in China as a whole, however, suggesting that 1M in a month on what is by far the country’s largest carrier may be somewhat lower than anticipated …
There was, however, no reaction from the market in pre-market trading in AAPL, the 0.27 percent dip in the stock price well within normal variation.
China Mobile reported its first annual drop in profits in 14 years, which has been attributed to a mix of infrastructure investment in 4G, loss of SMS revenue from other messaging services and handset subsidies to meet fierce price competition from other outlets. The company is hoping that data revenues from iPhone users will help drive profitability through the year.
Analytics data suggests that the iPhone 5S has around a 12 percent share of iOS devices in China, while the 5c has just two percent – older iPhones and iPads making up the balance.
Morgan Stanley yesterday said that it expected Apple to announce worldwide Q2 sales of 42M, a 4.5M year-on-year rise.
Filed under: AAPL Company, iOS Devices Tagged: 4G, Apple, Beijing, china, China Mobile, iPad, iPhone, iPhone 5C, iPhone 5S, iPhone China, iPhone numbers in China, iPhone sales in China, Morgan Stanley
From tomorrow, AT&T will cut the price of its 2GB data plan tier ‘Mobile Share Value’ from $55 to $40. In total, this plan will cost you $65 per month in data charges for one device, comprised of the reduced $40 data plan and a $25 device charge. As usual, there is a $25 charge for each device that shares the data allowance. For one device, this represents an overall reduction of approximately 20% of AT&T’s current offerings. Otherwise, the plans remain the same with unlimited talk and text service, unlimited international messaging in addition to the shared data.
Yesterday, T-Mobile announced more ‘Uncarrier’ changes to its plans. T-Mobile has doubled the LTE data bucket from 500MB to 1GB on the $50 Simple Choice plan. The data cap on the $60 plan has also been increased by 500MB, from 2.5GB to 3GB. The carrier has also introduced a new $80 tier, which offers unlimited data on 4G LTE.
The reshuffling has meant that the $70 option has suffered slightly, going from unlimited 4G LTE to just 5GB of data, although T-Mobile has doubled the tethering allowance to 5GB too.
However, T-Mobile now also bundles unlimited international texting into all of its plans. This means texting worldwide is now completely free, a big saving compared to charging per text sent as before. AT&T bundled unlimited international texting into its plans back in February. T-Mobile also announced a slight expansion of its global free data roaming to include Afghanistan, Guam, Honduras, Macau, Uganda, San Marino and the Canary Islands.
John Legere (@JohnLegere) March 08, 2014
Filed under: AAPL Company, Tech Industry Tagged: 4G, Afghanistan, AT&T, Gigabyte, LTE, Mobile Share Value, T-Mobile, United States