Wall Street is happy that Apple’s iPhone deal with China Mobile finally came through.
Ever since word broke yesterday that Apple has finally clinched the much rumored iPhone deal with China Mobile, the largest mobile carrier in the world, the company’s stock has climbed over 3 percent. Investors, analysts and the Street in general has welcomed this development, and the view right now is that this deal will end up in a 5 percent surge in Apple’s 2014 revenue estimated by the folks on Wall Street.
Well known analyst Gene Munster of Piper Jaffray has predicted the five percent surge, he also believes that Apple can sell 17 million iPhones on China Mobile in the coming year, which would mean a 10 percent penetration of the carrier’s existing 176 million 3G subscribers. Maynard Um of Wells Fargo also weighs in, expecting Apple to sell 42.8 million iPhones in the next quarter following sales of 54.8 million in the ongoing December quarter. Perhaps the most bullish of all analysts is Brian White of Cantor Fitzgerald, who predicts that iPhone sales on China Mobile may reach 20 million to 24 million in the coming year.
It has already been predicted that this deal may end up adding up to $10 billion in yearly revenue for Apple. This deal is certainly important for Apple, not only is it now able to effectively penetrate one of the most lucrative markets in the world, it also gets to increase its market share in China and compete more strongly with local vendors, who dominate the smartphone scene in the country.