The $1,720 iPhone MIRACLE!
Ohhh…iPhone? Miracle? Steve Jobs? And Money? This has my attention. And it seems to have caught the attention of a lot of people reading Brian Perry’s teaser. His new advertisement teaser is very compelling, and border line pumpish (is that a word?) for our taste, but still its very tempting. He says we only have 24 hours to get join his newsletter and get “this one stock buy could double, triple… even QUADRUPLE your money.” Really? Well, lets see about that. We have sliced and diced through the clues left us by Brian Perry and decided to figure out what “Miracle Telco” he wants us to grab a slice of.
What China ‘Miracle Telco’ meets secretly with Steve Jobs? Perry goes on to suggest that he knows why Apple delayed its launch in China. Steve Jobs wanted the timing to be perfect….calling China the “Mother of all phone markets.” While China is a huge emerging market, and as its middle class continues to grow, we will certainly see much of the western personal luxuries becoming a demand. But analysts have suggested that the delay of the next iPhone was more due to Apple wanting more time to launch in the US, and another suggested that it was due to Qualcomm’s LTE chipset not meeting yield demands yet. Whatever the case, Apple will launch in China. But with which company?
Previously the only Chinese carrier authorized to sell Apple iPhones is China Unicom (NYSE: CHU). Apple signed a 3 year agreement with them back in 2009. Apple really didn’t have much of a choice back then. China Unicom was the only carrier with a large 3G network. Apple launched the iPad in China in 2010 with a WiFi option vs the 3G option that would tie new iPad owners to China Unicom, which leads us to believe that Apple’s future plans in China may be other than using China Unicom exclusively. China Unicom is the 2nd largest mobile carrier in China, but still a far cry from the biggest. Which brings us to the next company, and the “China Miracle Telco” that Brian Perry wants us to know about after signing up for his newsletter.
This China “Miracle Telco” possesses roughly 70% of the Chinese mobile phone users. That’s quite a bit, considering there are over 900 million of them. China is the largest mobile market on the planet. In fact it is now the largest smart phone market on the planet now too. And Apple fanfare in China is extremely strong.
Earlier this year, Bloomberg reported that Apple was working with China Mobile (NYSE: CHL) on an alliance that could lead to iPhones for its new 4G TD-LTE networks. Because of the extremely large customer base of China Mobile, it only makes sense that eventually Apple would be heading toward cutting a deal with the mobile behemoth. And as it so happens, China Mobile is Brian Perry’s “Miracle Telco”.
To date, China Mobile has been playing in the dark with its obsolete 2.5G network, unable to service all of the features of the modern smart phones. The closest thing Chinese mobile subscribers had to that was with China Unicom, and its 3G network, but all that could soon change, as China Mobile plans to roll out commercial use of its TD-LTE network in 2012.
“China Mobile and Apple hope to find a solution for close collaboration” on the TD-LTE network and compatible products, Chairman Wang Jianzhou said in an interview. “We discussed this issue with Apple. We hope Apple will produce a new iPhone with TD-LTE. We have already got a positive answer from Apple.”
Apple has “reached consensus” with China Mobile on the use of the carrier’s forthcoming TDD-LTE network for a future iPhone. A move like this would be very good news for both companies, as Apple can gain a significant foothold in China and China Mobile could gain even more users. The potential for big growth is certainly there. Sales being the keyword.
China Mobile does pay dividends too, as noted in Brian Perry’s teaser. Check out the chart below the D signifies dividend payments, currently over a 4% trailing yield that has climbed over the last few years.
At the time of this writing China Mobile (NYSE: CHL) is trading just under $50, well off its 2007 highs of $100. CHL has been trading pretty much flat since the end of 2008, but with its new 4G network soon to come online, and any deal cut with Apple, should see some nice growth, and some serious potential for other smart phone makers to see their sales rise too. The biggest factor in all of this will be China Mobile’s new up to date network and its ability provide service for all the features of any smart device. So was this really “Steve Job’s final coup” as suggested by Perry?