This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple, China Mobile: Closer Than Ever

Stocks in this article: AAPL CHL QCOM

NEW YORK ( TheStreet) -- Perhaps the reason to be most bullish on Apple (AAPL - Get Report) as it pertains to China is starting to come to fruition. It's not there yet, however.

Discussing first-half results, China Mobile (CHL) Chairman Xi Guohua was optimistic about a deal between his company and the iconic iPhone maker, saying the two sides are "actively negotiating," but that there are some "commercial and technology issues that need time to resolve."

This isn't the first time the two companies have been in the news together. In early January, it was reported that Apple CEO Tim Cook and Guohua had met on "matters of cooperation," but there was nothing new to report at that time. Cook was spotted in China again in July, but again there was nothing new to report on an official relationship between Apple and China Mobile.

Eventually the two companies will come to a deal, and it will be huge for both companies, moreso Apple. China Mobile had 740 million customers at the end of the first half of 2013, up 8.4% year-over-year. At the end of June, it had 137.9 million 3G users, which is the segment Apple is targeting.

Obviously Apple isn't going to get all 137.9 million users. But China Mobile continues to build out its network and a new chip from Qualcomm (QCOM), the RF360, which was unveiled in February, will eventually allow China Mobile to officially support an iPhone on its network. The RF360 supports the following networks: LTE-FDD, LTE-TDD, WCDMA, EV-DO, CDMA 1x, TD-SCDMA and GSM/EDGE, thus making it a global chip that will allow Apple to run its iPhones on every cell network in the world.

It's thought that there are already as many as 10 million iPhones on the network, though the world's largest carrier doesn't officially support it.

In Apple's latest quarter, revenue from China fell 43% sequentially, and 14% year-over-year to $4.64 billion. On Apple's recent earnings call, Cook noted that some accounting and inventory factors weighed on China, but it wasn't clear what exactly happened.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs