The true impact of China Mobile deal in the platform war
I have nothing to do tonight so I decided to throw my two cents on the recent events regarding cell phones in China. Many of you probably know that several days ago China Mobile announced a whole lumia line while denied iphone on their network and that's the very reason for Nokia to jump 13%, apple to drop 6.5%(apple lost about twice of nokia's market cap that day). But I doubt any of you actually knows the meaning behind this as the whole business there in china is upside down different. Let me start off by explaining how it works differently in China. First and for most, there's no such thing as transfer your number to another carrier in China. And this, I believe, is the very core to the market power China Mobile possesses. What this means is that for the 700m users they have, anyone wanna to jump ship to another carrier with the iphone need to seriously consider the trade off. Everyone uses their cell long enough should understand the importance of your number, it's almost as important as your id or pin if you ask me. A second difference, which offsets the market power provided by the first, is that in China, phones never come out locked. That means if you can grap a phone at wherever you want and choose whichever carrier you like to use it. So since there are different channels for one to get hands on Iphone, it's quite easy for him/her to pick up an iphone somewhere else and use it under China Mobile's network. So being denied by China mobile means no such thing as Apple have no access to China mobile's users, and that, I suppose is why both of the parties would not give in. Let me explain this to you a bit further. So for Apple, they wont give up their rip your ass off profit share plan with China mobile because guess what, they still can get to their users one way or another. And for China Mobile, they would never give in because obviously their users can always use an iphone bought somewhere else if they so wish. Thus not selling iphone wouldn't be a customer losing threat to them. Ok here I want to provide some other details in regard China mobile. It has literally the best coverage I've ever known of, you get reception in subay, on the top of a mountain, in the middle of a wildness, inside a buncker, underwater...literally everywhere you can possbily go. Same can not be said to other carriers in China, they are somewhat in line with what we get here in America, China mobile just blow all them away in this regard and this makes switch carrier a pain in the axx even more so. Ok Back to the topic, so why would the China mobile deal matters at all. That has have something to do with their so called big customers, aka corporate customers. I have no number with me as how many such customers they have, but let's say 100m for the purpose of this article and that's quite significant already right? These customers are the ones that can get private deals with china mobile and also the ones that would not switch carrier in a thousand years. So it's like a sub market that only China Mobile have the direct access to and a great portion of them are the ones with the true purchasing power.(As you know an iphone in china worth 2-month income for many) And that's the part Nokia won access to while apple get denied. I will stop here as it's really hard to draw a conclusion that really how much impact this deal has. But I do have a feeling that if apple and china mobile will ever get into a deal, it would be apple that to give in. Now as I read this, I'm not sure why I put it here..but as long as some of you enjoy this bit of information..