China Mobile, the country’s leading mobile operator seems to be planning to expand to 4G service by spending 41.7 Billion Yuan that is equivalent to $6.7 Billion and get itself ready for the next iPhone launch in China. This is a welcoming news for Apple which is struggling to make an impact in China. Currently Apple holds third position in China with a market share of 11% trailing behind Samsung and Lenovo. China Mobile currently caters almost twice the number of consumers than the largest mobile network in US, even though China Mobile does not offer iPhone supported networks it still has around 10 million iPhones being used on its network which shows the potential of iPhone in China. China Mobile feels that it can reverse its decreasing and slowing down profit stream by offering iPhone on their network.
China Mobile’s profit increased by 2.7% this year and scored a profit of almost $21 billion but analysts say that China Mobile has better capability and can aim for a better profit stream in 2013. Apple is rumoured to be launching a new iPhone this year that will be compatible with China Mobile’s 4G network and the mobile operator is planning to increase the handset subsidy it offers by 13% this year compared to 2012.
The proposed plan aims at catering almost 500 millions users across 100 cities in China by installing around 200,000 base stations compatible with 4G, the number of consumers China Mobile is aiming at is almost a third of the entire Chinese population right now
Hope Apple’s aggressive marketing plans combined with China Mobile’s aggressive expansion will help Apple boost it sales exponentially in 2013/2014 and once again create the much needed buzz by volumes as well.