Apple's (AAPL) Cook Holds Strategic Talks with China Mobile (CHL) Over 'Cooperation'
Apple (Nasdaq: AAPL) may be closer than ever to a new wireless deal with the world's largest carrier.
According to reports out Thursday, CEO Tim Cook took time to meet with China Mobile (NYSE: CHL) CEO Xi Gouhua. The two met to discuss "matters of cooperation," a China Mobile spokesperson said today.
Apple already operates on China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) mobile networks in China. However, with some 700 million subs, China Mobile dwarfs its competition in China, much less the rest of the world. Only about 10 percent, or 73 million, subs are 3G network subs, though that number is expanding annually.
Discussions between the two have been an ongoing event, with the biggest hangup being revenue sharing terms.
China Mobile and Nokia ( NYSE: NOK) recently announced a partnership to bring the Lumia 920 onto the large network. The move has bolstered Nokia's shares, as it gives the Espoo, Finland-based mobile giant a leg-up on Apple in what Apple largely expects will become its key market moving forward.
Another key point that China Mobile might be honing in on is Apple's plan to release a more-affordable iPhone. Given the inability for the two to meet on even terrain over revenue sharing, China Mobile might see more subs making the leap to 3G should a popular device come in at the right price.
Shares of Apple are indicated for a higher open Thursday
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