Does China Mobile's Earnings Miss Mean It Needs Apple's iPhone?

Describing Chinese telecom powerhouse China Mobile's (NYSE: CHL  ) performance thus far as lacking would be more than generous. In fact, the world's largest telecom provider has lost roughly 10% so far in 2013.

As China's only telecom not to sell Apple's (NASDAQ: AAPL  ) iPhone, China Mobile has been much maligned by the financial media and investment community for not carrying one of the world's most popular smartphones.

However, the earnings story for China Mobile's struggles extends beyond lacking Apple's iPhone. It is in the midst of a massive round of capital expenditures as it invests heavily to roll out its 4G network to 100 networks throughout the rest of the year. The company was also dogged by excessive handset subsidies as it fights tooth and nail against rivals China Telecom and China Unicom, both of which happily peddle Apple's iPhone.

In this video, tech and telecom analyst Andrew Tonner looks at China Mobile's most recent earnings shortfall and reiterates his argument for a China Mobile-Apple deal sooner rather than later. 

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  • Report this Comment On October 27, 2013, at 1:00 AM, stef333 wrote:

    Forget the iPhone, they should keep focusing on rolling out their 4G coverage.

    What do you think they would achieve with iPhones on 2G?

    People signing up and canceling before the end of the day because everything is too slow.

    2G was a hot thing back in the 90s.

    Once they have 4G coverage customers will be happy on any Android, even Windows phone.

  • Report this Comment On October 27, 2013, at 1:03 AM, stef333 wrote:

    Verizon winning move in the US was "can you hear me now? Good!", not getting the iPhone.

    Jokes apart, better and faster coverage than your competitors is the best investment for a mobile phone company (of course without bleeding yourself into bankruptcy)

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