According to Reuters, Tim Cook, Apple's CEO, recently met with Xi Guohua, China Mobile's chairman, in Beijing to discuss about "matters of cooperation." Given the domination of China Mobile and the growth in China's smartphone market, a deal with the largest mobile carrier would provide Apple more chance to grow.
Taiwan and Hong Kong were both part of the Greater China. During the last quarter, the Greater China constituted approximately 13% of the overall sales of Apple. The figure was equivalent to US$5 billion. Analysts said that Tim Cook wanted to reverse the trend of plunging Greater China sales which slumped by 43% from April to June. Analysts added that the deal would benefit China Mobile too since the company was not offering Apple products to its customers.
An agreement made by Apple and China Mobile would present a catalyst for more growth for the two companies. Hence, analysts said that investing in Apple now would expose a venture capitalists' portfolio to Chinese smartphone and mobile growth.
Join the Conversation