Apple gets access to a huge smartphone market

The company inks a deal to begin selling its phones on the largest network in China. Does this make Apple a buy?

By Motley Fool Investor Beat Dec 23, 2013 3:03PM
Shares of Apple (AAPL) were up Monday on the news that it has finalized a deal with China Mobile (CHL).

The deal means that China Mobile, China's largest phone network, will begin supporting the iPhone 5s and 5c. According to Motley Fool One Analyst Jason Moser, this opens Apple up to China Mobile’s approximately 700 million subscribers -- however, because the GDP of China is somewhere around $10,000 per person, Chinese consumers will be much more sensitive to the high price of Apple phones than American consumers are.
Meanwhile, Apple enjoyed the benefits of being the sole proprietor of Beyonce's new album a few weeks ago, leaving retailers like Target and Amazon out in the cold.

Jason thinks that exclusivity will become more commonplace with music as it has with movies, but that doesn't mean that Apple will dominate it -- bricks and mortar retailers, as well as Amazon, will continue to pose a threat.

So with all that said, is Jason buying Apple today? He says no, but that doesn't mean that Apple isn't a great company that investors should keep an eye on.

The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.

Dec 24, 2013 10:07AM
This article points out the fallacy of present market prices.  As the arbitrage of wages continues and worker wages in the US decline to those of the Asian rim profit margins will shrink and stocks will become massively overpriced.
Dec 24, 2013 4:49PM
Apple, AT&T and Verizon set the subsidies for iToys in the US but what if China tells its carriers that all device subsidies will be standard regardless of brand or device. A $600 device should cost $120 upfront and $20 month for 24 months or $600 upfront. The service plan should be separated from the imbedded device plan like T-Mobile is now doing. That will be a real eye opener for consumers and cut way into the 2 year refresh cycle.
Dec 24, 2013 12:23PM
Access does not translate directly into sales!
Dec 23, 2013 5:08PM
That's good news for Apple, for now.  But how about later, when the Chinese clone Apple's new phone. and sell it for a third of current retail price.
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
266 rated 2
485 rated 3
660 rated 4
586 rated 5
652 rated 6
640 rated 7
504 rated 8
289 rated 9
159 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.