Shanghai, China (4E) – China Mobile on Thursday reported a slowdown in net profit growth last year to 2.7 percent, citing stronger competition in China’s telecom industry.
The state-owned company announced an increase of net profit to 129.4bn yuan ($ 20.8bn) on revenues of 560.4bn yuan. The world’s biggest mobile operator by subscribers said the 6.1 per cent revenue growth last year was boosted by the company’s data business.
The latest results come after reports that Apple CEO Tim Cook held discussions with the company’s executives in January in Beijing, raising hopes that subscribers will soon be offered the iPhone.
The growth rate in 2012 was slower compared to the 5.2 per cent expansion posted in the previous year, as the industry welcomes more players taking a piece of the world’s biggest smartphone market. Along with intensified competition in huge Chinese mobile market, costs are also rising as companies spend more in new technology.
Demand in China for smartphones has grown rapidly in recent years as the infrastructure reaches more of the population, but that has also increased competition among the big telecom operators.
China Mobile reported a 9.3 per cent increase in the number of subscribers to 710 million, including 87.93 million 3G users. The steady economic growth in China and the fast development in the technology sector have driven this growth, according to the telecom giant.
Category: Computing And Information Technology
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