Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Cash in on China’s Massive Mobile Phone Market

Companies / China Stocks Aug 30, 2012 - 09:59 AM GMT

By: InvestmentContrarian

Companies

Best Financial Markets Analysis ArticleChina has been growing exponentially in many areas, but while there is some stalling, an area that continues to expand at a staggering pace is the mobile phone sector. The growth is enormous with the number of subscribers surpassing one billion users. Let me put it another way: there are more mobile users in China than the populations of the United States, the European Union, Mexico, and Canada combined!


These are exciting times for China’s mobile market where three major carriers dominate the market, according to my stock analysis.

The adoption of 3G and 4G networks will help to drive additional growth in the country’s mobile phone market due to the need for new phones, based on my stock analysis. At the end of May, there were about 167 million mobile 3G users in China, up 126% year-over-year, according to Topeka Capital Markets. Growth in 3G is expected to continue rapidly.

Apple Inc. (NASDAQ/AAPL) is a major player in China, with sales in the country accounting for about 20% of total sales in the second quarter, and this is expected to rise. My stock analysis is that the potential is significant as Apple only has 10% market share of the Chinese smartphone market.

The income demographics in China support the spending. In a recent research finding, Credit Suisse predicted that the household wealth in China could double to $35.0 trillion by around 2015, based on achieving sustainable GDP growth at or near the current levels; albeit, the current slowing will impact wealth but will still allow consumers to spend on more non-essential goods and services, such as mobile phones, according to stock analysis.

The top mobile company in the country is China Mobile Limited (NYSE/CHL). With a market-cap of around $216 billion, the company is massive. By comparison, AT&T Inc. (NYSE/T) is the largest mobile provider in the U.S. with a market-cap of $212 billion, and Verizon Communications Inc. (NYSE/VZ) has a market-cap of $123 billion.

The price chart of China Mobile continues to look bullish, based on technical analysis.

Chart courtesy of www.StockCharts.com.

China Mobile is one of the largest companies in China and can be considered a “widow” stock for long-term buy-and-hold investors, based on my stock analysis. The company is ranked the top brand in Bloomberg Businessweek’s “20 Best China Brands.” The stock pays an annual dividend of $1.89 for a current dividend yield of 3.5%, based on the prevailing stock price of $53.78.

The company had 683 million subscribers, or over 67.0% of all mobile users in China, at the end of June. The company is the world’s largest provider of cellular services, based on subscribers and has set its sights on expansion outside of the Great Wall via its ownership of Luxembourg-based Millicom International Cellular S.A. (NASDAQ/MICC), a telecom operator with about 8.4 million subscribers and 17 mobile operations in 16 countries.

Going forward, my stock analysis is that China Mobile should benefit from the massive mobile market and growth in the 3G and 4G telecommunications area.

Alternatively, you can look at the makers of mobile accessories and builders of telecommunication networks in China, according to my stock analysis.

My stock analysis is that the Chinese mobile market is massive and worth a look.

Source: http://www.investmentcontrarians.com/stock-market/chinas-massive-mobile-market-how-you-can-cash-in-on-it/574/

By Sasha Cekerevac, BA
www.investmentcontrarians.com

Investment Contrarians is our daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

Copyright © 2012 Investment Contrarians- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in