Printed from http://www.electronista.com

China Telecom subscribers rise on iPhone 4S sales

updated 11:37 am EDT, Wed August 22, 2012

Profits seeing 'short-term pressure' because of high iPhone subsidies

China Telecom added 8.35 million subscribers during its second quarter, something attributed to launching the iPhone 4S in March, Bloomberg reports. Net income dropped 10 percent year-over-year from 5.05 billion yuan to 4.55 billion yuan, or $716 million. The figure did however exceed a 4.4 billion yuan median between seven analysts; Telecom says the iPhone should improve long-term growth while putting "short-term pressure" on profit margins, since it is paying high subsidies for each iPhone upfront instead of over the course of a contract.

Telecom is just the second official iPhone carrier in mainland China, competing against China Unicom. Still missing from the picture is China Mobile, the world's largest cellphone carrier with over 650 million subscribers. While a number of hacked iPhones are on Mobile, a proprietary 3G network has prevented official sales. That could change sometime after the launch of the next-generation iPhone, which may support the LTE network Mobile is in the process of building.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News