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Apple Forges Agreement With China Mobile

Forbes is one of several news sources reporting that Apple and China Mobile have agreed on a plan that will bring the option of iPhones to tens of millions of customers of the Chinese carrier. A separate article contains something that may be at least as interesting as the deal itself, and that's some speculation on what sort of network China Mobile will be using for all those iDevices.

79 comments

  1. Apple in China by rjr3 · · Score: 1

    When VW started making cars in the US the price dropped.
    Wonder how that will work for prices in China ?

    1. Re:Apple in China by rjr3 · · Score: 1

      Apple prices of course. VW is already sold in China

    2. Re:Apple in China by Anonymous Coward · · Score: 3, Insightful

      Please explain how Apple can move iPhone production to China.

    3. Re:Apple in China by Anonymous Coward · · Score: 0

      Having just bought a VW, I can tell you... They're built in Mexico.

    4. Re:Apple in China by Anonymous Coward · · Score: 0

      Depends on the model. My VW was produced in Wolfsburg, Germany.

    5. Re:Apple in China by Anonymous Coward · · Score: 1

      With trucks from VW?

  2. Rotten Apple by rmdingler · · Score: 1
    Tax fraud in Italy and now forgery in China.

    C'mon, the headline is low hanging fruit, right?

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  3. Important Bits in TFA by retroworks · · Score: 1

    Apple currently has 15% market share in the world's largest, and fastest growing, cell phone market. Talk amongst yourselves, discuss.

    --
    Gently reply
  4. Peak Apple 2012 by tuppe666 · · Score: 5, Interesting

    Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide, and is soon to retain relevant only in the relatively small market of the US (UK and Japan maybe) where the high subscription masks the overpriced midrange iPhone. China Mobile does not have high subscription rates

    The reality is though is that that this deal is unlikely make much impact (it will result in new sales). The iPhone is already available in China it is about 1% of the market (The claims of 20% apply to measures in a few stores in cites and rightly have been laughed away)

    Apple needs to drop its(compete on) price to remain relevant in a worldwide market. Putting last years phone in cheap plasic only helps their bottom line.

    1. Re:Peak Apple 2012 by gnasher719 · · Score: 1

      Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide, and is soon to retain relevant only in the relatively small market of the US (UK and Japan maybe) where the high subscription masks the overpriced midrange iPhone. China Mobile does not have high subscription rates

      Apple's share of the phone market has grown year after year after year without fail. There is a sub-market called smartphones, that's different.

    2. Re:Peak Apple 2012 by fullback · · Score: 4, Interesting

      I live in Japan and it seems like everyone I see has an iPhone.

      I just got back from a business trip to Beijing and it seemed like everyone had an iPhone.

      But hey, what would I know?

    3. Re:Peak Apple 2012 by jovius · · Score: 1

      Not necessarily. Apple is the profit leader of the whole industry.The market grows faster than Apple can deliver, but money flows in regardless.

    4. Re:Peak Apple 2012 by MightyYar · · Score: 3, Insightful

      They don't need to fight an attrition battle for market share - they just need to keep enough high-end users so that their platform remains the preferred launch point for developers. They don't need the most users - they need the most users who actually purchase apps.

      So long as they can keep that position, they have no incentive to drop margins.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    5. Re:Peak Apple 2012 by jon3k · · Score: 0

      "midrange iPhone"

      lol

      Mobile is a two horse race between Apple and Samsung, anyone who believes anything else is deluded.

    6. Re:Peak Apple 2012 by jon3k · · Score: 2

      This is Slashdot where Apple is evil and only market share (and not revenue or profits) matter. Welcome and enjoy your stay!

    7. Re:Peak Apple 2012 by Swampash · · Score: 0

      Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide

      On the contrary, Apple has nearly 100% market share in one specific market - people who have money and who are happy to spend it. Of course Android totally dominates Apple in the "poor freeloading pirate" market, which I'm sure has Apple very very worried.

    8. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      This is Slashdot where Apple is evil and only the ever increasing market share of Samsung is of interest to anyone.

      There fixed it for you.

    9. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      I live in Japan and it seems like everyone I see has an iPhone.

      I just got back from a business trip to Beijing and it seemed like everyone had an iPhone.

      But hey, what would I know?

      I just came back from a conference in Beijing, and everyone and their dog had an Android phone. I did see a few iPhones, but they were a tiny minority.

      I guess we both see what we want. Don't underestimate the power of personal bias.

    10. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      You have funny notion of "midrange." And as for this not making an impact, yes, the phone is already in China, just like it was already in Japan. But when the largest carrier began selling it, sales soared.

    11. Re:Peak Apple 2012 by YabooYig · · Score: 2

      When I last visited China, the vast majority of people had Samsung phones.

      I saw a particular preference for large screen devices.

      IMO it will be difficult to get the Chinese to pay the price of a Galaxy Note for a device with a 4 inch screen.

    12. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      No, only idiots buy Samsung's 'market share' numbers.
      If you count shipped phones and spend billions giving away feature phones dressed up as smart phones then you too can be in Samsung's position.
      The UK sounds much the same as Japan and Beijing; people using smart phones are everywhere and most of those are iPhones.
      It seems that if people can afford it and have the choice then they'll get an iPhone.

    13. Re:Peak Apple 2012 by whisper_jeff · · Score: 3, Insightful

      Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide...

      Apple continues to grow their sales and Apple continues to pull in more profit than any other manufacturer (and only one other manufacturer is even close - all others are MILES AND MILES behind). Despite their market share being watered down due to cheap, inferior, "smartphones" that are really just feature phones running Android. I mean, really, for anyone using a top end smartphone, would you ever use, as your regular phone, one of the cheap options that are out there watering down the market share numbers? Do you seriously even vaguely put them in the same category as an iPhone or Galaxy S4 or HTC One?

      I don't think Apple really cares about losing the bottom end of the market to subpar phones and I find it immensely amusing that people still think their loss of market share despite increasing sales is of any concern to them. If you think Apple cares about losing to a market in which they aren't even competing, then you're not paying attention.

      Or, to put it in a car analogy so people understand, do you think that BMW and Audi care about $15k and less cars being sold? Protip: No. No they do not.

    14. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      Personally, I like phones that fit in my pocket. However, I do think apple should release a big screen iPhone for woman's purses.

    15. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      They don't buy it because it's hip. They buy it because the quality of the product and its performance are head and shoulders above the cheap Samsung copies.
      Much the same as Mercedes, BMW, and Audi still sell cars despite the Asian and American copies. There are some people who can recognize value still spending money, and that's Apple's market. It's also why Apple makes money and the others don't; Apple is not in the cheap copy business.

    16. Re: Peak Apple 2012 by Anonymous Coward · · Score: 0

      You seem to not understand that as markets grow they commodify. All the other vendors have a full product range. Apple has their one product and last years model in cheap plastic. Apple is NOT a Rolls Royce. At best they are a Buick in a market full of Chevys. They won't sustain a two digit market share in the growing global market by selling Buicks to the gentry.

    17. Re:Peak Apple 2012 by jjp9999 · · Score: 1

      I had a friend who worked at the Apple Store in NYC. He said they used to get huge lines of Chinese people every day when they opened who would buy as many iPhones as they'd be willing to sell. Apparently they were jailbreaking the phones and reselling them for huge markups in China. Not sure if this is still going on, but from what he was telling me there's huge demand for iPhones in China.

    18. Re: Peak Apple 2012 by shilly · · Score: 1

      You seem not to understand that mature markets are capable of sustaining relatively high-value premium products. Not Rolls-Royce or Ferrari or Zondas: BMW, Mercedes. There are plenty of those sold. Lots of car aficionados will tell you that most Beemers and Mercs are poor value and only idiots buy them. Well, there's enough idiots to sustain plenty of profits (and most of those idiots would snort with derision at people who tell them they've bought "the wrong car", just as iPhone users will do to AndroidBores who tell them they've bought the wrong phone).

    19. Re:Peak Apple 2012 by BasilBrush · · Score: 1

      Apple needs to drop its(compete on) price to remain relevant in a worldwide market.

      Apple is one of only 2 manufacturers making a profit from smartphones. The other being Samsung. And Apple's profits are much larger than Samsung's. So why on earth would Apple need to do anything to compete with companies that are doing far worse than they are?

    20. Re:Peak Apple 2012 by c++0xFF · · Score: 1

      Becuase revenue and profits should somehow matter on Slashdot. We're mostly techies here, not investors. Market share is a much better metric for things we're interested in.

      When I see a company charging significantly more for a marginally better product, I think "price gouging" and "profiteering" not "exceptional company." but maybe that's just me.

      Besides, even investors are worried that the ever-decreasing market share is eventually going to catch up to the high-margin pricing model eventually. Maybe that's in the next couple years (a common view, it seems), but I think it'll be a while yet.

    21. Re:Peak Apple 2012 by mosb1000 · · Score: 1

      Apple has 40% market share in smartphones in the US, but it looks a lot higher when you're just walking around (especially in a big city). I'd assume that's because iPhone users are more likely to be using their phone at any given time.

    22. Re:Peak Apple 2012 by IamTheRealMike · · Score: 1

      It's because iPhone's are very visually consistent, so it's easy to quickly spot them. Other phones are much more mixed so they don't tend to stick in your mind so much.

    23. Re:Peak Apple 2012 by jon3k · · Score: 2

      There are people that appreciate a premium product and are willing to pay more, and those that aren't. It's why Toyota and BMW are both successful companies. It's also why I call BMW an "exceptional company" even though their products are significantly more expensive. I certainly appreciate your position and it's one shared by a lot of people. I don't think that makes either of us wrong, it's just a difference of opinion. But it's also why I'm less concerned over market share and who makes a genuinely better product, which for me, currently, is an iPhone 5S. And before you get your pitchfork out, I was a Galaxy Nexus user before this and I thought it was a really good phone.

      But I have to disagree with your use of the phrase "price gouge" when referring to smartphones -- there are plenty of alternatives out there. Maybe I just use too narrow of a definition of the term but I typically reserve the phrase for some kind of necessary or somewhat necessary commodities that someone has the only supply of for sale.

      Remember that even though Apple's PERCENTAGE of the overall smartphone marketshare is decreasing, their TOTAL marketshare is INCREASING, just not as fast as the total market size, mostly because the market is increasing into areas that are far more price conscious (read: China). But, Apple just signed this deal with China mobile so I'll be very interested to see what happens. This is the huge growth market for Android that has allowed it to rapidly outpace Apple's growth with incredibly cheap, low end Android "smartphones".

    24. Re:Peak Apple 2012 by Anonymous Coward · · Score: 0

      >> Apple needs to drop its(compete on) price to remain relevant in a worldwide market

      Only on slashdot would this drivel be voted up. So in your opinion apple should stop the strategy of selling premium priced products which has earned it massive profits and instead join everyone else in a race to the bottom. Let me guess, BMW should also quit charging so much and start competing on price with Kia.

    25. Re:Peak Apple 2012 by crimson+tsunami · · Score: 1

      Because all people are business people right?

    26. Re:Peak Apple 2012 by Whiney+Mac+Fanboy · · Score: 1

      "smartphones" that are really just feature phones running Android

      Wow! You're a fuckwit. Even the cheapest shittest android phone is still a smartphone. I'd love to hear your definition of a smartphone that covers the first gen iphone, but doesn't include current low end androids.

      --
      There are shills on slashdot. Apparently, I'm one of them.
  5. Good on you, Apple by Anonymous Coward · · Score: 0

    There's clearly a demand there four most excellent products. I applaud you for working out an agreement for presence in this lucrative market! Steve Jobs would be proud!

  6. Devil + Devil = by Steve_Ussler · · Score: 0

    The two devils has united!

  7. More like 1% by tuppe666 · · Score: 2, Interesting

    Apple currently has 15% market share in the world's largest, and fastest growing, cell phone market. Talk amongst yourselves, discuss.

    Except those figures are laughable. Other measures claim 1%...the ones that include the whole of china not just one or two inner city stores. Worldwide Apple marketshare has been flat at 5%-7%

    1. Re:More like 1% by jon3k · · Score: 3, Informative

      And their percentage of mobile revenue and profits? Apple always sold a premium product, I don't think they have any desire to lead in marketshare.

    2. Re:More like 1% by Anonymous Coward · · Score: 0

      Wonder what will unfold as the US telco's start to reject the highly subsidized phones?

    3. Re:More like 1% by jbolden · · Score: 1

      In the last 18 mo USA telcos have boosted their standard subsidies and restructured their pricing to support it. It doesn't look like they intend to move away from a high subsidy model.

    4. Re:More like 1% by Anonymous Coward · · Score: 0

      That is the problem, they encouraged customers to adopt to smartphone and over 18 months have been subsidizing a lot.

      Now they want to back out of the very behavior they encouraged

      Take a read:

      AT&T chief: We can't keep doing big subsidies on phones

      http://news.cnet.com/8301-1035_3-57615114-94/at-t-chief-we-cant-keep-doing-big-subsidies-on-phones/

    5. Re:More like 1% by jbolden · · Score: 1

      Institutionally AT&T increased the spread between their subsidy and non-subsidy plans so that they can do subsidies. They fixed the problem but in the other direction.

    6. Re:More like 1% by puto · · Score: 1

      Not really. Let me clue you on two major Telecoms who have done the exact opposite. Tmobile you have have to now pay full price for the phones, they just spread it over two years by dividing the full retail price of the phone by 24 months and then adding that number to your monthly statement until the phone is paid off. So no subsidy. AT&T copied that model with the NEXT program. Both companies only allow this if you credit qualify for the programs. Otherwise with T-Mobile you have to at least pay 30-40% of the phone retail cost upfront and then still pay a monthly note. AT&T if you do not qualify for it you do get the regular subsidy route but the upfront costs are higher. Both companies offer cheaper monthly rates if you bring your own equipment.

      --
      The Revolution Will Not Be Televised
    7. Re:More like 1% by BasilBrush · · Score: 1

      Worldwide Apple marketshare has been flat at 5%-7%

      Apple's worldwide market share of what? Phones, mobile phones, smartphones, mobile devices, PCs, jelly beans? With neither a market specified, nor a source of your percentage, your claim is worthless.

    8. Re:More like 1% by jbolden · · Score: 1

      T-Mobile I'd agree has gone the other direction. But remember they merged with MetroPCS they are becoming a high end MVNO / Prepay vendor.

      AT&T and Verizon haven't. Rather what they've done is introduced a situation where you:

      a) buy the phone
      b) pay a year's subsidy
      then trade in the phone after 1 year or 8 mo early rather than paying off the remaining year.

      That's far more expensive. You are basically giving them more than the surrender cost. That's not a no subsidy model that's just a crazy good deal for suckers who don't realize how much their phones are really worth.

  8. Apple Following Nokia by tuppe666 · · Score: 1

    Apple's share of the phone market has grown year after year after year without fail. There is a sub-market called smartphones, that's different.

    I find it somewhat Ironic that when Nokia occupied the position of owning the Phone market. Apple shareholders *cough* would focus on their presence in smartphone market. It is a telling that shareholders now quote the Phone market...with their plummeting market share in smartphones. The phone market (if you are splitting hairs) is *replacing* the Phone market and smartphones are already overtaken phones this year.

    In context of this article...are those in rural china who are still on feature phone going to buy a lightly subsidised iPhone even a $100 cheaper last years model in plastic. I would strongly suggest not.

    1. Re:Apple Following Nokia by BasilBrush · · Score: 1

      Apple shareholders *cough* would focus on their presence in smartphone market. It is a telling that shareholders now quote the Phone market...with their plummeting market share in smartphones.

      When Steve Jobs launched the iPhone his target was to get 1% of the phone market. Not the smartphone market. From people other than Jobs and Apple there has been discussion of all various definitions of market share> Generally with a definition of which market share is being talked about. Though not with you. You don't specify, because usually when you make a claim, you invented it on the spot.

    2. Re:Apple Following Nokia by Anonymous Coward · · Score: 0

      Apple's share of the phone market has grown year after year after year without fail. There is a sub-market called smartphones, that's different.

      I find it somewhat Ironic that when Nokia occupied the position of owning the Phone market.

      Apple never had the marketshare of Nokia, while Android has - so according to you Android is doooooomed.

  9. sabotage the phones at china's request by Anonymous Coward · · Score: 0

    Wonder if Apple will add any backdoors / side attacks at the reqiest of China...

  10. iPhoe loses developers by tuppe666 · · Score: 1

    They don't need to fight an attrition battle for market share - they just need to keep enough high-end users so that their platform remains the preferred launch point for developers.

    Except Android already had more Applications than Apple so it cannot be true, and this divide is set to grow, In China for example...who is going to produce local applications for 1% of the population. This is simply another example why Apple needed to maintain market share.

    1. Re:iPhoe loses developers by MightyYar · · Score: 1

      There may very well be "more" Applications, but I've yet to see the big money launch "Android First". I've seen numerous analysis papers which conclude that most money in the Android ecosystem is made on free apps through advertising.

      My bias is as an Android user but Apple stockholder.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  11. Profits vs Market Share by tuppe666 · · Score: 1

    Not necessarily. Apple is the profit leader of the whole industry.The market grows faster than Apple can deliver, but money flows in regardless.

    As a consumer the fact that Apple demands higher mark-ups(but shrinking) from carriers to maintain those massive (but shrinking) good for you?

    1. Re:Profits vs Market Share by Anonymous Coward · · Score: 0

      This is one of my favorite comments from apple fans Pro apple people. They claim that Apple is fine since it has the highest profits. Not sure they ever connect the fact that the consumers pay for those huge margins.

      Wonder what will happen when people want a lower cost product and Apple refuses to lower its margins?

      China also has a lot of really good quality phones which are only available in its domestic market. In some regard by not having a large land based telco system they were forced to adopt to cell phones early.

    2. Re: Profits vs Market Share by Karlt1 · · Score: 1

      This is one of my favorite comments from apple fans Pro apple people. They claim that Apple is fine since it has the highest profits. Not sure they ever connect the fact that the consumers pay for those huge margins.

      In the US, most consumers don't pay more for the iPhone than an equivalent Android. The carrier has to pay a higher subsidy to Apple. It may be argued that it causes all prices to go up across the board but not just Apple users.

    3. Re: Profits vs Market Share by puto · · Score: 1

      Untrue. You can get a Galaxy S4, and HTC One for .99c for free, or a Nokia 920 compared to the the 5s that runs between $125 and $199. You can get an S3 free whereas the the 5c runs between $25 and & $99. /i work for a major Telecom and I have to keep track of pricing of who is selling what, for how much, and where.

      --
      The Revolution Will Not Be Televised
    4. Re:Profits vs Market Share by Anonymous Coward · · Score: 0

      Oh goody, it's tuppe666 :). No pointless discussion would be complete without you.

    5. Re: Profits vs Market Share by Karlt1 · · Score: 2, Informative

      Untrue. You can get a Galaxy S4, and HTC One for .99c for free, or a Nokia 920 compared to the the 5s that runs between $125 and $199. You can get an S3 free whereas the the 5c runs between $25 and & $99. /i work for a major Telecom and I have to keep track of pricing of who is selling what, for how much, and where.

      Neither the s4 or the HTC One have the performance levels of the 5s.

      http://www.anandtech.com/show/7335/the-iphone-5s-review/5

      Their performance comes nowhere near the iPhone 5s.

      And are you really saying that a $25 difference between the s3 and the (faster) 5c is consequential - especially considering the 2 year contract?

    6. Re: Profits vs Market Share by rcoxdav · · Score: 1

      There is no denying that the 5s is really fast. However, in everyday use, does it need to be?

      I just got a Galaxy S4 ($50 on Amazon) and I have had zero lag in anything I have tried. Is the 5s faster, yes, is it noticeable in everyday use, not really. Just like with everyday use of desktops, the AMD A10 series is plenty fast for general desktop use, even though in benchmarks a Core i5 smokes it. However, unless you are running something very demanding, which most people don't, they won't see a difference.

      Also, I like being able to have a spare battery and put in an SD card to add memory without Apple charging insane upgrade prices.

    7. Re:Profits vs Market Share by Anonymous Coward · · Score: 0

      Not necessarily. Apple is the profit leader of the whole industry.The market grows faster than Apple can deliver, but money flows in regardless.

      As a consumer the fact that Apple demands higher mark-ups(but shrinking) from carriers to maintain those massive (but shrinking) good for you?

      As a fanboy the fact that anyone but Samsung is selling less phones than Apple and loses money at the same time is good for you?

    8. Re: Profits vs Market Share by Anonymous Coward · · Score: 0

      There is no denying that the 5s is really fast. However, in everyday use, does it need to be?

      Yeah, you are right. The iPhone 4 is plenty fast for everyday use. The Galaxy S4 not so much.

  12. Simply by tuppe666 · · Score: 0

    And their percentage of mobile revenue and profits?

    Plummeting.

    1. Re:Simply by Anonymous Coward · · Score: 0

      Plummeting.

      I'm not so sure that word means what you think it means.

    2. Re:Simply by Anonymous Coward · · Score: 0

      LOL.

      Don't worry, tuppe666 is such a dickhead.
      I can only hope he's getting paid for his trolling; it'd be a shame to think he's wasting his life for nothing : )

    3. Re:Simply by jon3k · · Score: 1

      [Citation Needed]

  13. From a Chinese by Anonymous Coward · · Score: 1

    I live in China in a medium city in the north. There is already many iPhone in China, among people in upper and middle class cities. Really rural poor city people doesn't have iPhone but most people in smaller cities (maybe 30%). So other than rural west Apple is popular here. And if you ask to anyone what phone do you want most say iPhone 5s.

    1. Re:From a Chinese by Spy+Handler · · Score: 1

      lemme guess, they want the Gold iphone right?

  14. Forbes is one of several news sources... by sribe · · Score: 1

    Well that's nice and all, but considering the recent history of reports that subsequently did not happen, it would certainly have been good to mention that Apple issued a press release announcing this yesterday.

  15. Seems fitting, seeing as... by Anonymous Coward · · Score: 0

    China has been forging Apple products for years! /bow ... I'll show myself out...

  16. English by tuppe666 · · Score: 1

    Plummeting.

    I'm not so sure that word means what you think it means.

    I mean the percentage of mobile revenue and profits is shrinking at a rapid rate, even when considering just *manufacturing* if we include software sales too. The figures are even worse.

    1. Re:English by Anonymous Coward · · Score: 0

      Ha - bullshit as usual.

    2. Re:English by BasilBrush · · Score: 1

      I mean the percentage of mobile revenue and profits is shrinking at a rapid rate

      Another stat which you do not have. You can't just wish statistical claims out of the air. You won't get a pony for christmas either, no matter how hard you wish.

  17. NOOO... by Anonymous Coward · · Score: 0

    http://www.youtube.com/watch?v=31g0YE61PLQ

  18. "iPhone" sold cheap on Shenzhen web sites by RavenManiac · · Score: 1

    No need for Apple to make deals with China Mobile. Found "[i]Phone" for $35 on Chinese web site--and it has a removable battery and dual SIM slots.

    Chinese ain't gonna buy Apple branded stuff when the above phone sez on the back, "Designed by Phone in California..."

  19. What excellent product? iPhone? HAHAHAHA by RavenManiac · · Score: 1

    iPhone is only "excellent" because Apple ads say it is. Most owners have never tried other smart phones to compare.