China Mobile to Boost Phone Subsidies in 2014 As It Anticipates iPhone Deal

Posted in Apple News, iPhone on 18/12/2013 by Chris Hauk


China Mobile will increase its spending on device subsidies in 2014 in an attempt to boost smartphone sales and entice customers to try its new high-speed wireless network.



China Mobile plans to sell as many as 220 million smartphones next year, compared with 155 million this year, Chairman Xi Guohua said today in Guangzhou, according to remarks posted on the carrier’s official microblog account. The carrier has yet to reach agreement with Apple Inc. (AAPL) to offer the iPhone, the official China Daily newspaper reported today, citing Xi.

Device subsidies will increase from the 27 billion yuan ($4.4 billion) spent this year, Xi said. The carrier will use the increased subsidies in an attempt to push its 759 million strong subscriber base to higher-priced voice and data plans on the faster network.

“This 4G service creates a new future,” Chief Executive Officer Li Yue told the developers’ conference in Guangzhou. “It will promote the popularization of a variety of application innovations.”

China Mobile received approval on December 4 for its 4G network. The company will market the new, faster service under the name “And.”

The China Daily quoted Xi as saying China Mobile hopes to have an agreement with Apple “soon.”

While Apple is widely reported as close to making a deal with the carrier, the world’s largest, no official announcement of a pact has been made.


Chris Hauk

MacTrast Senior Editor, and self-described "magnificent bastard," Chris Hauk owns Phoenix Rising Services and writes for everyone's favorite "bad movie" website, Big Bad Drive-In.

His first Apple product was an iPod Classic 9 years ago, and he has since added a MacBook Pro, a number of iPads, iPhones, and multiple Apple TVs to his collection.

He lives somewhere in the deep Southern part of America. Yes, he has to pump in both sunshine and the Internet.