Post by davidcv100 on Oct 3, 2012 22:45:08 GMT -8
THE TELL
China Mobile, Apple license deal unlikely soon:Deutsche Bank
blogs.marketwatch.com/thetell/2012/10/04/china-mobile-apple-license-deal-unlikely-soondeutsche-bank/
China Mobile Ltd., the world’s largest cellular provider by subscribers, won’t be inking a licensing deal with Apple Inc. [aapl] on the iPhone 5 anytime soon, according to investment banking research released Thursday.
Deutsche Bank analysts said its recent meeting with China Mobile’s management left them with the impression that there was little momentum for an agreement because of the “heavy subsidy burden” required to bundle the smartphone as part of its service offerings — an issue irksome to the Chinese government, which controls the company.
“We believe that the stars are not aligned for a China Mobile licensing of the iPhone 5,” Deutsche Bank analysts said in a note. “The government is not supportive.”
China Mobile said in August it would raise its handset subsidy target for 2012 to 26 billion yuan ($4.1 billion), up from an initial 21 billion yuan. The carrier’s handset subsidies in the first half totaled 12 billion yuan. Chinese carriers usually incur some of the upfront costs to help lure smartphone users, bundling contracts and services in such a way as to slowly offset such costs over time.
Deutsche Bank said rivals China Unicom Ltd. [HK:762] [CHU] and China Telecom Corp. [hk:728] [s: cha], which already have licensing agreements with Apple, would have a head start in distributing Apple’s latest smartphone in China, thanks to the rapid approval of the device for sale in mainland China.
Deutsche Bank on Thursday raised its target price on China Mobile to 86.36 Hong Kong dollars ($11.14) per share, an increase of 2.5% from its prior target of HK$84.27, but kept its recommendation on the stock at hold. Shares of China Mobile [HK:941] [CHL] sold for HK$85.95 Thursday afternoon in Hong Kong, for a loss of 0.6% from the previous close.
Shares of China Unicom and China Telecom were higher, however, rising 0.6% and 0.4% respectively, outpacing a 0.2% advance for the benchmark Hang Seng Index.
In its August operating update, China Mobile said its subscriber base swelled to 693.08 million, including 72.14 million 3G subscribers, representing a rise of 5.12 million net new subscribers for the month. China Mobile’s 3G network operates with a homegrown technical standard which is not supported by the iPhone, although the carrier is rolling out a next-generation standard in some Chinese cities.
– Chris Oliver
China Mobile, Apple license deal unlikely soon:Deutsche Bank
blogs.marketwatch.com/thetell/2012/10/04/china-mobile-apple-license-deal-unlikely-soondeutsche-bank/
China Mobile Ltd., the world’s largest cellular provider by subscribers, won’t be inking a licensing deal with Apple Inc. [aapl] on the iPhone 5 anytime soon, according to investment banking research released Thursday.
Deutsche Bank analysts said its recent meeting with China Mobile’s management left them with the impression that there was little momentum for an agreement because of the “heavy subsidy burden” required to bundle the smartphone as part of its service offerings — an issue irksome to the Chinese government, which controls the company.
“We believe that the stars are not aligned for a China Mobile licensing of the iPhone 5,” Deutsche Bank analysts said in a note. “The government is not supportive.”
China Mobile said in August it would raise its handset subsidy target for 2012 to 26 billion yuan ($4.1 billion), up from an initial 21 billion yuan. The carrier’s handset subsidies in the first half totaled 12 billion yuan. Chinese carriers usually incur some of the upfront costs to help lure smartphone users, bundling contracts and services in such a way as to slowly offset such costs over time.
Deutsche Bank said rivals China Unicom Ltd. [HK:762] [CHU] and China Telecom Corp. [hk:728] [s: cha], which already have licensing agreements with Apple, would have a head start in distributing Apple’s latest smartphone in China, thanks to the rapid approval of the device for sale in mainland China.
Deutsche Bank on Thursday raised its target price on China Mobile to 86.36 Hong Kong dollars ($11.14) per share, an increase of 2.5% from its prior target of HK$84.27, but kept its recommendation on the stock at hold. Shares of China Mobile [HK:941] [CHL] sold for HK$85.95 Thursday afternoon in Hong Kong, for a loss of 0.6% from the previous close.
Shares of China Unicom and China Telecom were higher, however, rising 0.6% and 0.4% respectively, outpacing a 0.2% advance for the benchmark Hang Seng Index.
In its August operating update, China Mobile said its subscriber base swelled to 693.08 million, including 72.14 million 3G subscribers, representing a rise of 5.12 million net new subscribers for the month. China Mobile’s 3G network operates with a homegrown technical standard which is not supported by the iPhone, although the carrier is rolling out a next-generation standard in some Chinese cities.
– Chris Oliver