Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Apple shares rise on China Mobile deal

24 December 2013, 09:00

New York - Apple shares rose Monday after the company sealed a hard-won deal with China Mobile to significantly boost its iPhone offer on the world's biggest wireless operator.

In morning trade Apple shares advanced 3.0% to $565.24 per share, hitting as high as $568.30 early in the session.

On Sunday, the US technology giant and China Mobile unveiled a deal to bring the iPhone to customers on a network with an estimated 760 million subscribers and until now dominated by low-cost Android smartphones.

The US company's iPhone 5s and iPhone 5c phones will be available at China Mobile and Apple retail stores across mainland China starting January 17, they said in a joint statement.

Pricing details were not announced.

Negotiations between Apple and China Mobile took years, with one key hurdle reportedly being the US firm's demand for sales volume guarantees.

"In our view, this has been the most difficult carrier agreement for Apple to negotiate in its history," said a note from Cantor Fitzgerald.

"However, we believe the opportunity for the iPhone to expand its reach within China Mobile's wireless subscriber base will prove to be well worth the wait."

Cantor Fitzgerald estimated that there are already 35 to 40 million iPhone users on China Mobile, but they use the provider's slower networks.

Sunday's deal opens up the faster network for iPhones and positions the US company to sell phones on the even-faster 4G network as its reach expands.

Cantor Fitzgerald estimated the deal could result in 20 to 24 million iPhone sales to China Mobile in 2014. Such a performance would have an earnings benefit of $4 per share.

Barclays predicted the China Mobile deal would have no impact on the upcoming quarter, but should benefit sales in the March and June quarters.

Barclays sees a "gradual" buildup in the China Mobile's faster 4G network and that Apple iPhone sales "may build over multiple quarters."

Barclays estimated the total Apple addressable market within China Mobile at 80 million units.


Tags apple

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...