This Morning: China Mobile Talks iPhone, Facebook for RIMM?
By Tiernan Ray
Some things going on in your world of tech this morning:
China Mobile (CHL), the world’s largest cellular operator by subscriber count, is talking with Apple (AAPL) to reach an agreement to carry the iPhone in China, according to statements made by China Mobile’s chairman Xi Guohua to shareholders on Wednesday, as reported by Reuters’s Lee Chyen Yee. The iPhone is already sold through the two other major carriers in China, China Unicom (CHU) and China Telecom (CHA).
Apple shares are up 98 cents at $554.15, while China Mobile shares are off $1.30, or 2.3%, at $54.33.
Speaking of the iPhone, The Wall Street Journal‘s Lorraine Luk and Juro Osawa this morning report that Apple will introduce the next iPhone with a larger screen, at least 4 inches on the diagonal, compared to the current 3.5 inches, citing multiple unnamed sources. This follows pretty much every rumor this year, and many from last year, claiming a larger screen for the next iPhone. But, take it for what you will.
The U.K.’s Daily Mail carries a story by Geoff Foster this morning saying that speculation “intensifies” as to what Mark Zuckerberg will do with roughly $13 billion in IPO proceeds come Friday. The columnist implies some parties — though who they might be, it’s not clear — already think Facebook is eyeing Research in Motion (RIMM).
“Facebook can go shopping for a seriously undervalued company such as RIM, to diversify its revenue stream, acquire some patents, and look for further synergies in the related technology industry,” writes Foster.
Research in motion Shares are up 28 cents, or 2.5%, at $11.38.
Speaking of Facebook, the firm has filed yet another revised IPO prospectus with the Securities & Exchange Commission, increasing its deal size from 337.4 million shares to 421.2 million shares, a 25% increase, confirming a report last night by Reuters’s Olivia Oran and Alexi Oreskovic. The deal price range remains $34 to $38.
Also speaking of Facebook, The New York Times‘s Tanzina Vega this morning writes that General Motors (GM) spokesman Tom Henderson confirmed the Journal’s report yesterday that the automaker is ceasing its ad spend on the social networking cite, explaining that it’s “not unusual for us to move our spending around various outlets.”
Shares of Chinese micro-blogging site Sina (SINA) are up $6.27, or 12%, at $57.94 after the company last night reported Q1 revenue that topped analsyts’ expectations and a smaller-than-expected net loss per share, although it projected this quarter’s revenue below consensus.
Nevertheless, the stock got two ratings upgrades to the equivalent of Buy this morning, from Barclays Capital and Credit Suisse.
Shares of light-emitting diode technology maker Cree (CREE) are up $1.20, or 4%, at $31.63 following a report by Cara Spoto with the Wisconsin paper The Journal Times this morning saying that a subsidiary, Ruud Lighting, has been selected by Wal-Mart Stores (WMT) to provide the chain’s outdoor lighting, citing remarks by a Ruud executive at a local board meeting in Mount Pleasant. Ruud’s U.S. offices are in Racine, Wisconsin. Spoto attempted to follow up with Cree but did not hear from the company, she reports.
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