Reuters reports that all that excitement about Apple’s iPhone heading to China was misplaced:
- China Mobile CEO “Wang brushed off suggestions an agreement might come soon when he spoke to reporters on the sidelines of a conference in Macau on Tuesday.”
- “A senior telecoms executive familiar with the situation told Reuters on Wednesday that Wang’s comments had been blown out of proportion.”
- “The iPhones — one of the hottest gadgets to hit U.S. and European stores this year — might be incompatible with the Chinese telecoms market because of their “locked” SIM cards”
- “Our business model does not entail sharing revenue with terminal producers — we don’t share revenue. That’s a Chinese rule,” said the executive.
- Analysts pooh-pooh the idea, citing the iPhone’s high price and those revenue-sharing challenges.
(And read the rest of the Reuters article. China’s wireless operators are desperate to do an iPhone deal. They’re just trying hard not to show it, so they don’t get snookered into a subscription revenue-sharing arrangement:
- “But of course, we’re always willing to discuss a good business opportunity if it presents itself.”)
Was the reminder that China is one honking big mobile market really worth an 11% boost in Apple shares yesterday? We don’t know. But here’s what we do know:
Whether the iPhone invades China this year, next year, or the following year won’t make a lick of difference to the discounted value of all of Apple’s future cash flows. So don’t let the near-term pooh-poohing of analysts trick you into thinking that Apple doesn’t have a gigantic opportunity in the PRC. (How big? Potential revenue numbers here)