Did China Mobile give Apple the deal of a lifetime?

Shares of the iPhone maker were up Thursday on the news that it has finally reached an agreement with a huge Chinese carrier.

By Motley Fool Investor Beat Dec 5, 2013 1:26PM
Shares of Apple (APPL) were up more than 1% Thursday on the news that the company has finally reached an agreement with China Mobile (CHL).

According to Motley Fool One Analyst Jason Moser, Apple has been pushing for this deal for a while, since it will provide the company with a subscriber base of 700 million new customers. However, Jason notes that those new customers have considerably less spending power than Apple’s customers in the United States, which means that Chinese buyers will be more sensitive to phone prices, and may not respond well to the constant replacement cycle that Apple pushes.
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Tags: AAPLCHL
6Comments
Dec 5, 2013 2:08PM
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What a ridiculous head line.  The Chinese businessmen give nothing, I mean nothing, for something.  It is their way or the highway.  Your information is old and I mean old.  Has been out there for a very long time and it is very long time of negotiating the details of the carrier versus hardware supplier.  Apple will do well with high end buyers and the surprise may be in the less than high end buyer to China mobile network.  Good deal for both which is the way it is in that country.  Nobody thinks Apple will sell to their entire customer base.....they just do not.  But, you are NOT wrong about it being a big moneymaker for Apple but also for China Mobile.    
Dec 5, 2013 1:49PM
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AT&T now gives you a $15 per month discount if you fulfill your device contract or bring an unlocked device  to them for month-to-month service.  That's $360 you save instead of constant upgrading to the next glam and hype device or buy one on Amazon.
Dec 5, 2013 4:20PM
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"AT&T now gives you a $15 per month discount..."

A GREAT marketing move. Most older phones just need a refurbished battery and just keep going. 

 "What a ridiculous head line.  The Chinese businessmen give nothing,"

Absolutely correct. Apple is really begging for survival without a Thinking Head. There are billions of Black Market phones in China that will feed off such a deal.  
Dec 5, 2013 5:34PM
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And the market sold off late afternoon, once again....We couldn't make this up if we tried folks, every day this week has been so similar....Manipulators having their best week in about 9 weeks...Oh well, a couple of things though, the GDP is suspect, totally made up; like we always say, they can fool the people out there but they cant fool Wall Street...Other than that news were decent today but, news do not move markets, people do and this week manipulators have been out in droves on and off the floor, making up for the last few weeks....Oh, one more thing, fasten your seat belts tomorrow.....Jobs day....God help us.
Ps..Tapering anytime soon is totally bogus.
Dec 6, 2013 4:43AM
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So is my mint-condition iphone 4 now worth double what it was before this deal?

they're going to need those older devices.

Dec 5, 2013 5:48PM
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"Chinese buyers [. . .] may not respond well to the constant replacement cycle that Apple pushes."

 

Consumer Churn: Can Apple make a new flavor of their business model -- "China Churn"?

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