Friday Apple Rumors: Poor iPhone 5c Sales Holding Up China Mobile Deal

by Christopher Freeburn | December 20, 2013 10:29 am

[1]Here are your Apple rumors[2] and AAPL news items for today:

Problem: Though most analysts had expected China Mobile (CHL[3]) to announce a deal to bring the iPhone to its network this week, the company says it it still in negotiations with Apple (AAPL[4]). Now, one analyst says the reason for the delay may have involve the lower-price iPhone 5c[5], AppleInsider notes. KGI’s Ming-Chi Kuo issued a research note suggesting that “weak sales of iPhone 5c may trigger a re-negotiation of the Apple-China Mobile partnership.” Apple has reportedly been discussing a deal with the world’s largest wireless carrier for months, with CEO Tim Cook traveling to China over the summer to meet with China Mobile executives. In recent weeks, some China Mobile subsidiaries were reportedly taking iPhone pre-orders and marketing materials for the iPhone were rumored. However, the carrier did not announce a deal at the unveiling of its new 4G/LTE network this week, as many had predicted. Kuo says that demand for the TD-LTE version of the iPhone 5c has fallen off badly in recent weeks as consumer interest in the iPhone 5s soars. That may have prompted China Mobile to renegotiate the terms of an agreement with Apple. Kuo says that the two companies are close to completing the deal. Kuo predicts that a deal with China Mobile could boost iPhone shipments by between 15 million to 20 million units in 2014 and by as much as 30 million units in 2015.

Surprise: When Apple announced the iPhone in 2007, the revelation caused an uproar[6] at Google (GOOG[7]), The Atlantic notes. The Internet search giant had been working on its own smartphone project since 2005. Google had spent 15 months developing its Android operating system, negotiating technology licenses and working on prototypes when Steve Jobs showed off the iPhone. When he saw the iPhone, Google engineer Chris DeSalvo thought: “We’re going to have to start over.” The iPhone’s design and interface was revolutionary. “What we had suddenly looked just so . . . nineties,” DeSalvo commented. Another Google executive working on Android at the time remarked: “We knew that Apple was going to announce a phone. Everyone knew that. We just didn’t think it would be that good.” Google quickly redefined its priorities for a smartphone and deployed the debut of Android until 2008.

’Tis the Seaon: Just in time for the holiday season, Apple has added gifting options to its iBookstore[8], MacWorld notes. The omission of gifting from the iBookstore has long been curious, especially since iTunes and the App Store have been offered the option for years. Gifts from the iBookstore can only be shared with users within the giver’s home country. Users who wish to gift an ebook can now select “Gift This Book” from a drop down menu and then enter the recipient’s name, a message and the sender’s name. Users can also specify a delivery date for the gift, or send it immediately.

For more about the company, check out our previous Apple Rumors[9] stories.

Source URL: https://investorplace.com/2013/12/friday-apple-rumors-poor-iphone-5c-sales-holding-china-mobile-deal/

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