China Mobile and Apple, Together at Last

There were conflicting reports this week about Apple  (NASDAQ: AAPL  ) and China Mobile  (NYSE: 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.

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  • Report this Comment On December 06, 2013, at 10:25 PM, DanManners wrote:

    Evan, you are the best one on Fool and I respect your views. But I am confused. WSJ says deal and China Mobile says no deal. Wouldn't WSJ have to address that issue?

  • Report this Comment On December 07, 2013, at 3:05 AM, johnestromjr wrote:

    No, Evan,we can't 'rest easy' until there IS a deal. As of now there is no deal. Why do all of you pundits try to be first when you don't know a thing more than we who are reading your posts? There IS no deal yet. When there IS a deal, Apple and China Mobile will announce it. THEN you can tell us there's a deal. Until then this is just so much hot air and meaningless. There IS supposed to be some kind of China Mobile event on December 18th. Let's hope it's the announcement between China Mobile and Apple. I'll wait until they announce though.

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