Tag Archives: china telecom

China Mobile iPhone launch could lead to subsidy wars, say analysts

Image: thenextweb.com

Image: thenextweb.com

Analysts say that the official launch of the iPhone on China Mobile could lead to subsidy wars as Chinese carriers compete to attract buyers. The predictions, quoted by Business Insider, follow price cuts by rival carriers China Unicom and China Telecom as China Mobile reports 1.2 million pre-orders.

China Mobile is currently offering the iPhone 5s free with a 24-month contract costing the equivalent of $98 a month. A 30-month contract on China Unicom costs $63 a month.

I do think you’re going to see a subsidy war coming,” said Michael Clendenin, managing director of Shanghai-based RedTech Advisors. ”China Mobile, if they’re not making their targets on sales for these phones, they’re going to increase the subsidies [...] It’s like airlines: the other guys will fall like dominoes, so China Unicom will do it and China Telecom will do it” … 

CK Lu, a Gartner analyst based in Taiwan, agrees.

You need to consider the cannibalization for sales to China Unicom, China Telecom and the grey market, so even though there’s an addition from China Mobile it will also impact sales from other channels as well.

The grey market refers to handsets smuggled into China through Hong Kong, then used on the China Mobile network. It has been estimated that there may have been more than 40 million handsets already in use on China Mobile prior to the official launch, though if the number is true it almost certainly includes a great many iPhones several generations old.

Others, however, think it unlikely that China Mobile would engage in a price-war, instead relying on its data speeds to attract customers. An informal test by the WSJ found that China Mobile was delivering twice the download speed of smaller rival China Unicom.

One thing all seem agreed on, however: any subsidy wars that do take place won’t affect whatever deal Apple has already agreed with the carriers – its margins will remain safe.

Filed under: AAPL Company, iOS Devices Tagged: Apple, Apple in China, china, China Mobile, China Telecom, China Unicom, Hong Kong, iPhone, iPhone 5, iPhone 5C, iPhone 5S

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In rare TV interview, Tim Cook says he is ‘honored’ to be doing business with China Mobile

In a rare TV interview, Tim Cook described this week’s launch of the iPhone on China Mobile as “a watershed day” for the company. While the soft-spoken Apple CEO is noted for the humbleness with which he speaks, it’s hard to imagine him describing Apple as being “honored” to do business with many other companies.

I’m so honored to be doing business with … China Mobile. It’s a huge announcement…we’re incredibly impressed with them, we have deep respect for them, and have had from the very first discussion that we’ve had together” … 

It had been suggested that Apple found itself in an unusually weak position when negotiating with the carrier, and may have had to make significant concessions to seal the deal.

Neither Cook nor China Mobile’s chairman Xi Guohua would be drawn on sales expectations, but China Mobile did say that it had received 1.2 million pre-orders as of Monday. It was reported yesterday that Apple had shipped 1.4 million iPhone 5s handsets to China ahead of Friday’s launch – with no word on 5c numbers.

Analyst estimates of the likely value of the deal have varied wildly. Cook had previously spoken of the deal as “only the beginning” of its cooperation with the carrier, saying there were “a lot more things our companies can do together in the future.”

The iPhone 5s and 5c have been officially sold by both China Unicom and China Telecom since the handsets were launched last year, but China Mobile’s network dwarfs both. Both smaller carriers have cut their pricing in a bid to compete.

Apple’s stock price initially fell when the launch did not take place on 18th December as had been predicted, then rose again when the deal was finally officially confirmed.

Filed under: AAPL Company Tagged: AAPL, aapl stock price, Apple, Apple in China, china, China Mobile, China Telecom, China Unicom, Friday, iPhone, iPhone 5, Tim Cook

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With new 4G licenses awarded in China, Apple is ready for big iPhone sales

Three China telecom operators have shiny new 4G licenses and guess what: Apple’s iPhone was certified for some of these networks back in September. All three providers – China Mobile, China Telecom and China Unicom — can now officially move forward with their TD-LTE plans and that means Apple is lined up to take full advantage of a big opportunity.

When China’s Telecom Equipment Certification Center provided a license for Apple’s phones to run on China Mobile’s network a few months back we wondered exactly why. After all, at that time, China Mobile didn’t have 4G and was using TD-SCDMA for 3G, which Apple’s new iPhones don’t support. Now it’s expected that China Mobile will launch its LTE service on December 18, which means Apple can sell then a compatible iPhone although the current model won’t fall back to 3G, posing an interesting situation.

China offers a huge opportunity for smartphone sales; not only does it have nearly 1.4 billion people as the world’s most populous country, smartphone uptake has been slower than in other regions, mainly because China is late to the 4G game. That’s fine by Apple because Cupertino has already prepared for TD-LTE support overseas by including it along with compatibility with 16 other LTE network implementations in a single handset.

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iPhone 5s & iPhone 5c Finally Approved For China Mobile

Further evidence to suggest that the new iPhones are almost ready for their long-awaited debut on China Mobile — the world’s largest carrier — has surfaced today after both the iPhone 5s and the iPhone 5c gained regulatory approval for

The post iPhone 5s & iPhone 5c Finally Approved For China Mobile appeared first on Cult of Mac.


Apple’s New iPhones Get Regulatory Approval En Route To China Mobile

Screen Shot 2013-09-11 at 12.56.33A much-anticipated iPhone deal between Apple and China Mobile looks even closer this week after the popular smartphone gained regulatory approval to run on the carrier’s wireless network. The new partnership will see the iPhone supported by the world’s largest network for the first time, opening it up to more than 700 million subscribers. “A […]

The post Apple’s New iPhones Get Regulatory Approval En Route To China Mobile appeared first on Cult of Mac.


All systems go for iPhone in China as regulator signs off final license

Photo: mshcdn.com

Photo: mshcdn.com

Apple now has all three of the licenses needed to allow the new iPhones to be used on China’s three major carriers: China Mobile, China Unicom and China Telecom. The WSJ reports that the final license was issued today.

According to the website of China’s Telecom Equipment Certification Center Wednesday, Apple was given a “network access license” for a handset resembling the iPhone that runs on the mobile standards used by China Mobile for third and fourth generation cellular services.

Apple announced yesterday that both iPhone 5c and iPhone 5s would go on sale in China on September 20th, in parallel with the US launch.

Analysts have estimated that Chinese and Japanese sales combined could add up to an extra 38M handsets a year.

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China Telecom apparently slips iPhone 5S, 5C arriving in China at launch, temporarily offers pre-orders

iPhone 5S Rear Shell

“Gold” iPhone 5S backplate

China Telecom, one of the carriers in China to carry Apple’s iPhone, posted a message on microblogging website Weibo indicating that it will soon carry both of Apple’s upcoming iPhones: the iPhone 5S and iPhone 5C. The message has since been deleted.


With Apple holding a satellite stream of the September 10th media event in China, it is already likely that the country will see a promoted launch of both of the new iPhones. However, the information from China Telecom seems to indicate that the launch will occur early in Apple’s new iPhone release cycle. With past iPhone launches, Apple saved the China debut for weeks or months after the device’s first hit countries like the United States, Germany, and Australia.


A post on Sina indicates a September 20th launch, a date forecasted by some reports.

Perhaps corroborating a launch soon after the unveiling, major China-based retailer Dixintong is said to begin carrying the new iPhones on September 25th. It’s unclear if this is a general launch date for China, or just the date that this specific retailer has chosen.

In addition to seeing the device early-on in the release plan, recent chatter seems to indicate that China Mobile, the largest mobile carrier in the country, will gain the iPhone with the launches of the iPhone 5S and iPhone 5C. The lower-cost, plastic backed iPhone 5C seems to have been developed with markets such as China in mind…

The China Telecom Weibo posting also touted pre-orders for the new iPhones, but that option has since disappeared on the carrier’s official website. To go with pre-orders, the carrier offered “high-end gift bags” to promote the launch.

Screen Shot 2013-09-05 at 2.24.00 PM

China Telecom’s website even offered some mockup images (all images shown below – click for larger) of both the iPhone 5S and iPhone 5C, but we do not believe the photos from China Telecom of the “iPhone 5C” are accurate. Most leaks and chatter has pointed to the iPhone 5C receiving a plastic casing. Our own sources have informed us that the 5C is essentially an iPhone 5 wrapped up in different colored plastics. With this in mind, the images and technical specifications listed on China Telecom’s website should not be believed.

The iPhone 5S, on the other hand, is built to look like an iPhone 5, but it will likely include additional enhancements such as a biometric fingerprint scanner, and improved processor, and improved camera hardware and software. 


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