Blog > International Investing > Will China Unicom (CHU) gain when Apple Inc.’s (AAPL) new iPhone goes on sale in China?
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Will China Unicom (CHU) gain when Apple Inc.’s (AAPL) new iPhone goes on sale in China?

Today's Financial News - Posted October 29, 2009

Apple Inc.’s (NASDAQ:AAPL) new iPhone will go on sale in China tomorrow. Hong Kong-based China Unicom Limited (NYSE:CHU) appears set to profit in the short term

by J. Christoph Amberger

Baltimore, MD — TFN: To my knowledge, Beijing’s not paying for Chinese consumers to trade in their cellphones for Apple Inc.’s (NASDAQ:AAPL) new iPhone. It will go on sale in China tomorrow anyway. Not that the Chinese aren’t already using iPhones and iPhone knock-offs.

But starting tomorrow, they can do so legally.

AAPL stock was up about 2% today. Increases in share price of component suppliers (Samsung and Sharp come to mind) were small enough to be blamed on the weather.

The greatest beneficiary of AAPl’s China market is Hong Kong-based China Unicom Limited (NYSE:CHU). The company hopes to pillage subscribers from arch rival China Mobile Ltd.’s (NYSE:CHL) 2G network by offering 3G service to users of “gray-market” iPhones.

Curiously, CHL shares did far better today than CHU.

Apple isn’t limited to CHU as a distribution distribution partner for the iPhone in China. China Mobile has indicated they’re still negotiating.

At $13.20, we think CHU may be a good speculation, with about a 20% upside over the next two weeks.


Next Article: TFN eNews 10/29/2009: Who wins in China’s iPhone roll-out?

Posted by J. Christoph Amberger · Filed Under International Investing 

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