As Apple (AAPL) moves into India and Russia, it still needs an official foothold in the largest cellular market–China. On the mainland there are over 500 million cellular accounts.
The consumer electronics company may be getting much closer to a partnership with China’s largest wireless carrier, China Mobile. China Mobile would buy the handsets from Apple and sell them to consumers at a subsidized price.
According to JLM Pacific Epoch, "The new plan is intended to replace revenue sharing models that left earlier talks at a stalemate."
If Apple is to reach its long-term goal of selling 20 million iPhones a year, it will need strength in the Chinese market.
Apple’s new deals with carriers may end up being financial unattractive for the cell companies, so Jobs & Company’s dreams of dominating the high end of the smart-phone market could still fall apart. To cut the high consumer price of the iPhone, large phone companies like AT&T (T) are almost certainly losing money on the initial purchase of each handset. Their gamble is that they will win new customers from competition and make money on profitable voice and data plans which are marketed with the iPhone.
If the flow of new customers and higher margin relationships with customers does not come, the iPhone will turn out to be just another handset sold alongside of a dozen other brands.
Douglas A. McIntyre
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.