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. 

Apple beyond China Mobile
Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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)

Add your comment.

DocumentId: 2700699, ~/Articles/ArticleHandler.aspx, 7/26/2014 3:58:23 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement