• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Apple Getting a China Partner?

China Telecom is reportedly already training its sales force on how to sell the iPhone.
By ERIC JACKSON Jan 17, 2012 | 12:30 PM EST
Stocks quotes in this article: AAPL, CHA, CHU

According to the Marbridge Daily, Apple (AAPL) is rumored to be close to signing up China Telecom (CHA) as a partner in China to bring the iPhone 4S to market.

Supposedly, the operator will bring out the phone in February or March.

According to reports, China Telecom is already training its sales force on how to sell the iPhone.

There were first reports that China Telecom was preparing to sell Apple phones back in September. But these new rumors appear to be much more concrete.

If true, the partnership is significant for Apple from several aspects. In the first place, despite its massive popularity and revenues from China, Apple only has five physical stores in mainland China (although a couple more are planned to open this year). That limited supply of stores can lead to huge bottlenecks like we saw last week in Beijing. After queuing up for more than a day at the Soho-like Sanlitun store in Beijing for the iPhone 4S, Chinese consumers were massively disappointed when Apple announced they were no longer selling the phones a few minutes after the store opened due to fears for the customers' own safety.

The angry customers were so upset with announcement that they started pelting the store with eggs. (Good thinking ahead by the ones who thought in advance to bring eggs just in case such a situation occurred.)

At the moment, China Unicom (CHU) is Apple's sole (AT&T-like) partner in China and the country's second-largest mobile provider. China Telecom is the largest fixed-line service in China and the third-largest mobile provider with 43 million subscribers.

So, the deal will also significantly increase the footprint of providers for the iPhone in China.

It's also important that Apple will launch with this partner so soon after the iPhone 4S' launch in China, to add further fire to the momentum behind the product in the country.

One of the open questions remaining is why Apple isn't being more aggressive in opening more stores in China. Last year, rumors came out that Apple had shelved plans for 25 new stores in mainland China over the next two years.  Apple first set this goal at the February 2010 shareholders' meeting.  It had been thought that Apple would open these stores in the second-tier cities like Hangzhou, Suzhou and Wuhan.

It's hard to understand why Apple is being so conservative, considering it's doing so well in the country.

Other retailers like Burberry have jumped into to China with both feet. The English high-end clothing retailer has more than 50 stores in China.

Perhaps we'll get some more answers from CEO Tim Cook soon.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, the author was long AAPL.

TAGS: Investing | U.S. Equity | Technology | Telecom Services | China | Markets |

More from Technology

In Awe of Marvell's Rally? Check the Charts, Not Your Emotions

Bruce Kamich
May 27, 2022 2:03 PM EDT

Here's why you should stay nimble as you approach MRVL after its post-earnings upswing.

This DXC Technology Rally Has Staying Power

Bruce Kamich
May 27, 2022 11:38 AM EDT

Here's our trading strategy.

Alibaba Shares Spurt Higher, but Drags on the Online Giant Lurk

Alex Frew McMillan
May 27, 2022 9:14 AM EDT

China's ongoing fight against COVID threatens to make the going tough for companies that do business there.

Thursday's Action Was Promising For Those Awaiting a Bear Market Bounce

Bob Byrne
May 27, 2022 8:30 AM EDT

The post-earnings rebounds of Snowflake and Nvidia plus the rally in the major indexes gave traders reasons for hope, at least in the near term.

Don't Change the Channel on Roku

Bruce Kamich
May 27, 2022 7:37 AM EDT

Here's why the shares could stage a recovery.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The tremendous power of the sell button.
  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login