China Mobile profit hit by competition, 4G costs (Update)

Mar 20, 2014

China Mobile Ltd., the world's biggest phone company by subscribers, said Thursday its profit last year tumbled 5.9 percent due to higher costs and intense competition.

Earnings declined to 121.7 billion yuan ($20.3 billion), the Beijing-based company said. That was despite a 5.4 percent gain in revenue to 590.8 billion yuan ($98.5 billion) and an 8 percent rise in the number of customer accounts to 767 million.

China Mobile is spending heavily to roll out fourth-generation service. It faces higher costs because it was assigned China's home-grown mobile standard, which limits its ability to draw on foreign technology.

China's state-owned telecoms industry was rearranged in 2008 into China Mobile and two competitors, China Telecom Ltd. and China Unicom Ltd., in an effort to promote competition. Each has a mix of mobile and fixed-line assets.

Despite rising demand driven by the popularity of mobile Internet, competition is "complex and intense," said China Mobile chairman Xi Guohua in a statement.

China Mobile announced an agreement in December to support the iPhone, becoming the last of the three Chinese competitors to forge a partnership with Apple Inc.

Explore further: Shift to mobile Internet hits Baidu profit

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Shift to mobile Internet hits Baidu profit

Feb 27, 2014

(AP)—Baidu Inc., which operates China's leading search engine, said Thursday its quarterly profit edged down 0.4 percent as it spent heavily to promote mobile services amid an industrywide scramble to keep up with users ...

China Unicom 2012 profit jumps by two-thirds (Update)

Mar 21, 2013

China Unicom Ltd., the country's second biggest mobile phone company by subscribers, said Thursday that 2012 profit jumped by more than two-thirds as revenue from third-generation mobile services surged despite stiff competition.

China Unicom 1H profit leaps 55 percent

Aug 08, 2013

China Unicom Ltd., one of the country's three big state-owned phone companies, said first half profit jumped by more than half as it signed up more third-generation users and customers increased their usage of mobile data ...

China Telecom profit up 20 percent on 3G users

Oct 28, 2013

State-owned China Telecom, the country's third-biggest mobile phone operator by subscribers, said Monday that quarterly profit grew by a fifth as it continued to benefit from spending by new users of data-hungry iPhones.

China Telecom profit falls 9.5 percent

Mar 20, 2013

State-owned China Telecom Corp. said Wednesday that profit fell 9.5 percent last year because it spent more to market the iPhone as it battled rivals for higher-paying customers.

Recommended for you

Airbnb to expand tax collection efforts

Jan 30, 2015

Online lodging operator Airbnb is expanding its efforts to collect local taxes, responding to complaints that it competes unfairly with the hotel sector.

Jay Z to acquire Wimp music service

Jan 30, 2015

US rap star Jay Z will make a $56-million foray into the music streaming business by taking over the Norwegian service Wimp, its shareholders confirmed Friday.

How can Google snap its stock out of its stupor?

Jan 30, 2015

Google has turned into a stock market laggard as the shift to mobile devices has lowered the Internet search leader's digital ad prices and the company's expensive investments in far-out technology has trimmed ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

BSD
not rated yet Mar 20, 2014
Finance, not science.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.