HK Equity Fund have reported that tech colossus, Apple Inc. has moved closer to gaining access to more than 750 million China Mobile subscribers after the world’s largest mobile carrier secured state permission to begin offering commercial service on the 4G network.
China’s Ministry of Industry and Information Technology also granted licenses to two smaller domestic mobile carriers but China Mobile will most likely have the most to gain as it tries to tempt customers with more expensive but far faster data plans.
“Formalization of a deal between these huge companies has been highly anticipated for some time but this is the closest we’ve gotten so far,” said an HK Equity Fund technology researcher. “A distribution deal of this magnitude would go a long towards Apple making a real dent in Samsung’s lead in the smartphone sales stakes,” he continued.
Apple’s iPhone C was initially seen as an attempt by the company to introduce a lower-priced handset for the Asian markets where disposable income is lower than in the West with a view to increasing sales in a segment where rivals like Samsung, LG and others were enjoying considerable success but lackluster sales of the phone indicate that the price was insufficiently low to attract buyers.
The 4G tie-up, if formalized, would see both the iPhone 5C and its more expensive cousin, the 5S with their 4G capabilities offered to subscribers at heavily subsidized prices.
“There is reason for Apple shareholders to be excited as a formal deal would almost certainly result in apop in the stock price,” said the HK Equity Fund researcher.
About HK Equity Fund
HK Equity Fund established a presence in Hong Kong in 1995. Today their Hong Kong office is their main hub in the Asia-Pacific region. All of HK Equity Fund’s business groups have operations in the city, making this their largest office in the region outside Australia. From Hong Kong they offer corporate finance and advisory, institutional cash equities and research, equity derivatives and structured products, debt financing and funds management, and environmental financial products, futures, metals OTC hedging and fixed income trading services.
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