There were conflicting reports this week about Apple (AAPL 0.52%) and China Mobile (CHL). The venerable Wall Street Journal reported that the deal was done, while Reuters is of the opinion that negotiations are still under way after contacting a China Mobile spokesperson. Still, it does seem that this deal is either inked or about to be inked, so investors can rest easy.
While Apple faced challenges at domestic carriers where it took longer to officially launch the iPhone, the Chinese smartphone market is still characterized by a large number of first-time smartphone buyers. Apple still has plenty of opportunity at the world's largest wireless carrier in the biggest smartphone market, since 3G penetration within China Mobile's subscriber base remains just 23%.
In this segment of Tech Teardown, Erin Kennedy discusses the long-awaited deal with Evan Niu, CFA, our tech and telecom bureau chief.
