toggle

AAPL Stock: 121.27 ( -1.1 )

Printed from http://www.macnn.com

China Telecom subscribers rise on iPhone 4S sales

updated 11:37 am EDT, Wed August 22, 2012

Profits seeing 'short-term pressure' because of high iPhone subsidies

China Telecom added 8.35 million subscribers during its second quarter, something attributed to launching the iPhone 4S in March, Bloomberg reports. Net income dropped 10 percent year-over-year from 5.05 billion yuan to 4.55 billion yuan, or $716 million. The figure did however exceed a 4.4 billion yuan median between seven analysts; Telecom says the iPhone should improve long-term growth while putting "short-term pressure" on profit margins, since it is paying high subsidies for each iPhone upfront instead of over the course of a contract.

Telecom is just the second official iPhone carrier in mainland China, competing against China Unicom. Still missing from the picture is China Mobile, the world's largest cellphone carrier with over 650 million subscribers. While a number of hacked iPhones are on Mobile, a proprietary 3G network has prevented official sales. That could change sometime after the launch of the next-generation iPhone, which may support the LTE network Mobile is in the process of building.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented