Tomahawk, WI 9/12/2013 (BasicsMedia) – The world’s largest carrier, China Mobile Ltd. (ADR) (NYSE:CHL) finalized the deal with Apple Inc. (NASDAQ:AAPL) wherein the company would sell the iPhones in domestic and international markets. After long years of negotiations, finalizing this deal with the largest carrier in both Chinese and world markets will bring success for Apple.

Strength of China Mobile

This largest carrier presently has 745 million subscribers, which proves to be seven times the subscribers of Verizon wireless, more than double the population of the U.S. and around 17 times the number of subscribers of T-Mobile. While Apple already has agreements with China Unicom and China Telecom to sell its iPhones, these carriers put together would be only half the size of China Mobile. While this deal with China Mobile was expected from quite some time, it was just a speculation until it materialized recently.

The subscriber numbers posted by China Mobile for the past eight months until July 2013 reports that the sequential growth rates of 3G subscribers proves to outpace the numbers posted by the other competitors in the field. It is further worth noting that only 20% of 740 million wireless subscribers of China Mobile are 3G subscribers, compared to 39% for China Unicom and 51% for China Telecom. It thus explains that the 3G base of subscribers of China Mobile is growing faster than that of its peers and further, this base also has further room to expand in the near future. These two facts together present a great opportunity for Apple.

Involvement in LTE expansion

China Mobile is further involved in the LTE infrastructure expansion planned in recent years in Chinese markets. It is expected that the impact on revenues of the company owing to expansion into the 4G base would show up later this year. The company announced that it would spend around $30 billion towards capital expenditure and nearly half of this is expected to be spent for the TD-LTE development of the carrier.

China Mobile recently doled out contracts worth $3 billion and it is further looking out to build more than 200,000 base stations in 30 provinces of China. It is expected that Xilinx Inc., (NASDAQ:XLNX) which is looking to capture a larger share of the strong opportunity presented by such LTE infrastructure expansion of wireless carriers, is expected to enter into an agreement with China Mobile and China Telecom for 4G expansion in the Chinese markets. An agreement with this largest carrier in China would prove to boost up the revenues of Xilinx through this 4G bandwagon.

China Mobile is thus presenting excellent opportunities for growth through its recent agreement with Apple to sell the iPhones and through its effective expansion into the 4G base. Further, the expected faster pace of growth in the 3G subscriber base also presents better prospects for profits in the near future.

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