Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

China Mobile Ltd. (ADR) (CHL), Apple Inc. (AAPL): An Untapped Goldmine

The first photo leaks of the rumored gold iPhone left many Apple Inc. (NASDAQ:AAPL) fans raising eyebrows. But one reason for the odd color makes a bit of sense.

Adjusting the hue

But first we’ll need to clear up some confusion surrounding the rumored gold iPhone. Two things, asserts TechCrunch’s MG Siegler.

One, it’s not gold — it’s “champagne.” This makes quite a difference, believe it or not. Just compare for yourself:



Original mock-up of rumored gold iPhone 5S. Source: iMore.

Versus this:


New mock-up of rumored gold, or “champagne” iPhone 5S. Source: iMore.

Two, gold is actually a popular color in two very important markets: China and India. In fact, MG Siegler notes that gold is one of the most popular colors for both iPhone after-market color adjustments and cases.

Apple wants China… bad
A champagne iPhone alternative together with the rumored array of different colored options for a lower-cost iPhone, or the so-called iPhone 5C, would mark a substantial deviation from Apple Inc. (NASDAQ:AAPL)’s typical iPhone product line-up. But I think there’s a reason for it.

As I’ve mentioned recently, $465 billion market capitalization or not, Apple still faces tremendous opportunity in China. According to recent data from Canalys, Apple’s share of smartphone shipments in China in the second quarter amounted to a palty 4.8% — there’s enormous room for growth.

If China likes gold and if lower-priced smartphones have proven to take the most populous country by storm, then I’m on board with Apple’s shift in its iPhone product line strategy. China’s a big market, and Apple Inc. (NASDAQ:AAPL)’s sticky ecosystem and powerful halo effect are powerful drivers to creating loyal Apple customers for the long haul. The more new customers Apple acquires today, the better chance they have at creating lifelong transactional relationships with them.

An untapped goldmine
And don’t forget: The world’s largest wireless carrier, China Mobile Ltd. (ADR) (NYSE:CHL), still doesn’t carry the iPhone. Perhaps Apple’s willingness to adapt to the Chinese market has something to do with its pursuit of this goldmine. The carrier boasts a whopping 740.2 million wireless subscribers, or 63% of China’s total users.

Maybe it’s just a coincidence, but recent rumors suggest that Apple Inc. (NASDAQ:AAPL) and China Mobile talks have been making meaningful progress. In fact, China Mobile Chairman Xi Guohua recently told Reuters, “We are actively negotiating and both sides are keen.”

With China Mobile as a partner, Apple Inc. (NASDAQ:AAPL) could make substantial gains in the important Chinese market.

If China likes gold, then bring it on.

The article A Gold iPhone? Really? originally appeared on

Fool contributor Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and China Mobile. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.