China Mobile Ltd. (ADR) (CHL), AT&T Inc. (T), Apple Inc. (AAPL): More Carriers, More Sales

Nevertheless, it seems almost certain that a China Mobile deal is coming within the next few months. This week, the Chinese government issued a permit for Apple’s new iPhones to operate on China Mobile’s network. The exact timing of an iPhone launch on China Mobile will have little impact on Apple’s results, as long as it comes within the next six months, because demand routinely outstrips Apple’s ability to produce iPhones for the first few months after launch.

Foolish wrap-up

The addition of new carrier partners has been a major growth driver for Apple over the past two years. Apple’s recently announced agreement with NTT DoCoMo and the expected agreement with China Mobile should continue to drive iPhone sales higher in FY14. While sales will not grow quite as much as they would have with a sub-$400 iPhone, Apple’s margins will be correspondingly higher. That should help Apple return to solid EPS growth next quarter.

The article The iPhone Isn’t Done Growing originally appeared on and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Apple and is long January 2015 $390 calls on Apple. The Motley Fool recommends Apple and owns shares of Apple and China Mobile. 

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