Revisiting Our $22 Estimate For China Unicom

The inconclusive talks between head honchos of China Mobile and Apple CEO Tim Cook, regarding iPhone 5 is a huge boon for China Unicom and China Telecom. At present these two carriers have exclusive access to iPhone users in China. But we don?t expect China Mobile to offer the iPhone 5 anytime soon as its existing infrastructure doesn?t support the device, and we are skeptical that China Mobile would want to make additional capital spending for a phone that has already been in the market for over three months. We also don?t expect Apple to provide capital support or concessions to China Mobile, as it will set a dangerous precedent for future products in the world?s largest consumer market. (see Apple Faces China Mobile-Sized Stumbling Block Limiting China Upside Potential)

http://www.forbes.com/sites/greatspeculations/2013/01/14/revisiting-our-22-estimate-for-china-unicom/