Joseph Wang – China Mobile Is Ready For Rapid Growth

China’s economy may be at a slower rate than the previous growth, but is expected to grow by more than 5%. This is due to these growth estimates, China is expected to overtake the United States as the largest smartphone market.

An increase of nearly 8% share of smartphone sales in the global market in the country, is expected to the end of the current fiscal year. This is not surprising, as the most populous country in the world per capita income increased gradually, advances in technology, the decline in the price of the smartphone.

China Mobile (NYSE: CHL) is the world’s largest telecommunications network, and have nearly 700 million users. The company’s market capitalization hit $ 22 billion, is one of the largest enterprises in the world. Headquartered in China, China Mobile and get 70% of the share of the domestic telecommunications market. Its rival China Unicom (NYSE: CHU) has 20% of the shares, the remaining 10% of China Telecom (NYSE: CHA).

The company’s telecommunications network based on 3G technology is not new in any aspect. It should be noted that the 3G penetration rate of only 18%, the technology is still in its early stages. With the growth in the number of smart phones in the domestic shift more users to the 3G network. It is reported that, as of August of this year, China Mobile has 72 million 3G users, even 10% of the total number of users.

China Unicom, China Mobile, one of the competitors, has a total of 2.27 million subscribers, including 63.7 million 3G subscribers. Between users was 28%, much higher than China Mobile’s 3G penetration.

So far, China Mobile’s competitors, in a dominant position to become the world’s largest telecommunications companies provide 3G services. To recycle the stronghold, China Mobile has announced the launch of 4G LTE services after 2013, smartphone users will not have to switch networks, and enjoy seamless download speed.

To expand its data hungry user base, it recently announced that China Mobile and Apple negotiations with China Mobile’s service contract in the domestic release of the iPhone 5. Transactions between Apple and China Mobile has announced upgrades to 4G LTE technology can actually pass. Ultimately, the deal is expected to a substantial increase in production sales of the iPhone, mainly because of China Mobile’s extensive influence over the country, a large user base. China Mobile can expect the rapid increase in the popularity of 3G, 2G users because of its high-end smart phone manufacturers reputation.

Telecommunications companies to market competition, give subsidies to contract on the phone and its users. After the contract expires, the user can choose to switch or stay in the service provider. If the user decides to stay, and income, as well as ongoing telecommunications company profits. In order to beat the competition, China Mobile announced that this will be the speed of the massive subsidies from the current $ 190 million to $ 4.1 billion, a 215% increase in management. The company has cash reserves of more than U.S. $ 580 billion, which will ensure that the increase in the subsidy does not produce a strain on the company’s business.

The stock performance of the three companies, China Mobile has been a star performer YTD.

Comparison of the three major telecommunications company financial indicators, we can see that China Mobile has the lowest debt / equity ratio. The company also has the highest return on investment, and enjoys the highest net profit margin.

In my opinion, the introduction of new technology, China Mobile may completely change the rules of the game. Most data hungry users want to be the world’s largest telecommunications service providers to enjoy uninterrupted connectivity, which is due to compelling reasons mentioned above, I have a new move “buy” rating.

Telecommunication version iPhone rumor recurrence

Chinese telecommunication will in next June push C net edition iPhone; the news let the white powder on ripe apples or other fruit really excited period of time. Although has not obtained the official confirmation at present, but the hearsay actually jumps over the biography more to look like real. Looked from 2011 terminal development that the good handset is without doubt the user develops fast gives the strength extremely the essential factor. Based on this, in has experienced the terminal industry promotion year Chinese telecommunication inevitably this tendency extension to 2011, perhaps, when next year’s some, we really can see that C net edition iPhone in domestic goes on the market.

The iPhone rumor aims at the market competition. On 23rd, auspicious silver analyst Wang Jin jin forecast in its report, C net edition iPhone possibly in the third quarter of next year going on the market home. Its report said that American operator Verizon and the Apple Company promotes CDMA version’s iPhone at the beginning of 2011 (iphone accessories wholesalers), the Chinese telecommunication promotes CDMA version iPhone the time to be at least later than Verizon 6 month even longer time.

This forecast and the market hearsay mostly early are the same, revolves North America market C net apple throughout the going on the market timetable estimation debarkation domestic time. Wang Jin jin forecast that in 2011 the domestic telecommunication market’s competition pattern is decided by two big key aspects, when the China Unicom month net gains the 3G number of users to be able to achieve 1,500,000 to 2,000,000, when can the Chinese telecommunication attain CDMA version’s iPhone. Abandons other, no matter, the market generally believe at least, Chinese telecommunication in 3G market competition key point still in terminal. Without the good handset, the good network also cannot come up. Looking from the iPhone handset in 2010 performance (iphone accessories for cheap), it is enormous to the market propelling force, domestic presents the iPhone parallel import massively, still fell short of demand.

Section of iPhone4 has attracted the innumerable handset support eyeball, even causes China Unicom’s competitor China to move can also not but lay down the figure to promote -cuts the card- the service and so on, but the action deals. China moves with China Unicom confronts regarding iPhone demonstrates intensity the domestic 3G market terminal competition, although the present three operators gradually go out from the 3G start initial period’s time terminal deficient haze, but could draw the 3G user warm terminal product truly friendly to be still deficient powerfully may Chen. Formerly looked in the third quarter that is opposite moves the income share in other two operators sliding to, China moves is the only entire net moves the operator who the income tends rises with steady steps; In the number of users aspect, the closure on November 30, China moves the accumulation user to achieve 579,000,000 users, the 3G user accumulation amounts to 18,835,000 households; From: accessories for iphones