How Much Can China Mobile Ltd. (ADR) (CHL) Help Apple Inc. (AAPL)?

Obviously the degree to which Apple’s business will be stimulated by any China Mobile deal will depend on the exact terms that the telecom has been able to get in exchange for offering the new iPhone on its network, but it’s not out of the realm of possibility that Apple will earn over $2 billion annually as a result of the deal. This might not be enough to cover for major problems in wealthier geographies such as the U.S. and Europe, but as we’ve said at its current valuation Apple can prove a good value merely by treading water and finding ways to return more cash to shareholders. To the extent that China Mobile Ltd. (ADR) (NYSE:CHL) helps the company shore up its income statement, pulling off an agreement would seem to be a significant victory for Tim Cook.

Disclosure: I own no shares of any stocks mentioned in this article.