Apple Inc (AAPL) Stock Erratic; Is China Mobile a Deal or No Deal?
By Athena Yenko | December 6, 2013 6:28 PM EST
Apple (AAPL) was erratic on Thursday. At one point, it reached $577.25 and if market closed with this price, it will be the highest of Apple (AAPL) stock price since Nov 6, 2012. The surge came as a result of the Wall Street Journal's report that a "person familiar with the situation," - the situation that of the closing of the Apple-China Mobile deal - had been signed and drawn into conclusion.
However, Apple (AAPL) stock closed at a decreased price of $567.90. Analysts noted that it closed a bit low after Reuters reported that China Mobile had denied the WSJ report.
"We are still negotiating with Apple, but for now nothing new to announce," Rainie Lei, a spokesman for China Mobile told Reuters.
Meanwhile, Apple (AAPL) real time quote as of Dec 12, as published by NASDAQ OMX, is at $566.61; today's high at $577.38, today's low at $564.1299; 52-week high at $569.25; 52, week low at 385.10.
China Mobile's share, on the other hand, rose 0.5 per cent to close at HK$84.7 in Hong Kong on Thursday.
The importance of the China Deal
Analysts seemed in unison in predicting that the deal with China Mobile will boost Apple's sales, particularly if China Mobile offers the iPhones at a subsidised or discounted price.
Apple can possibly sell 15 million more iPhones each year and could set its stock price at $585 with the China Mobile deal, said analysts from Pacific Crest Securities.
In a prediction made by analysts at Deutche Bank Securities, it said Apple can sell 20 million more iPhones in a year and could have its stock price set to $625, saying "China Mobile represents a significant, largely untapped market opportunity."
However, inasmuch as a deal with China Mobile is a "positive development" for Apple, Alex Gauna of JMP Securities noted that China Mobile had already been promoting Android phones on its Web site without any mention of the iPhone.
John Bright, an analyst with Avondale Partners, said that if the China Mobile deal pushes through, Apple's revenue will still be unclear because it can be affected by discounts that China Mobile might be offering its customers.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Tesco Facing Crisis After Chairman Quits Citing Accounting Scandal In The Retail Giant
- #Snapgate: iPad Air 2 Breaks While Undergoing Bend Test
- Australian Federal Court Fines Reebok $350,000 & Orders Refunds For Shoe Endorsed By Miranda Kerr That Claims Unproven Health Benefits
- Perth Call Centre Staff Bad In English And Not Philippine And Indian Counterparts, Telstra Boss Says
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Shifts Blame On US For Ukraine Crisis, Putin Accuses West of 'Remaking World'
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine