Analyst sees iPad launch with China Mobile the next ‘logical step’ after iPhone deal

[RaduTyrsina]

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Apple is getting closer and closer to finally signing the iPhone deal with China Mobile, China’s and the world’s largest carrier. According to a recent report that we covered, subsidy rates for the iPhone have recently leaked. This shows that the deal is almost ready to be finalized. The agreement between Apple and China Mobile makes it more likely that compatible versions of Apple's iPad lineup will soon be present in China Mobile’s portfolio, as well.

Connie Guglielmo from the Forbes publication explains why the China Mobile deal is so important for Apple:

This is a big deal for Apple for a few reasons. Greater China (China, Hong Kong and Taiwan)has been Apple’s fastest-growing market and now accounts for about 15 percent of sales, up from single-digits just a few years ago. It’s the third top region for sales after the U.S. And Europe. While Apple already has distribution deals with China’s other top carriers — China Telecom and China Unicom — China Mobile, with 759 million subscribers, with 176 million 3G users, is the big catch. (Consider: Verizon and AT&T have a combined 230 million or so subscribers.)

Analyst Chris Whitmore of Deutsche Bank sees the iPad launch through China Mobile a "logical next step" for Apple after the iPhone debut has concluded. At the moment, this is all speculation, but it makes sense for Apple to bring the successful iPad to China Mobile subscribers, as well. Sam Oliver with AppleInsider explains how this would work:

A delay between the introduction of the iPhone and cellular-capable iPad models on a carrier is not new. For example, Sprint began selling the iPhone in late 2011, but didn't offer LTE equipped iPads until a year later, while rivals AT&T and Verizon offered the third-generation iPad with LTE in mid-2012.

The same analyst sees Apple selling as many as 20 million iPhones through the carrier in the first year. He also estimates that this financial success will add around $4 in incremental earnings per share.

Source: AppleInsider, Forbes