After years of stagnanation under charismatic but otherwise uninspired longtime Chairman Wang Jianzhou, China Mobile (HKEx: 941; NYSE: CHL) seems to finally be regaining some of its long-lost excitement with buzz of Wang's imminent departure and the signing of a new deal to sell Apple's (Nasdaq: AAPL) popular iPhone. In the latest development on the Apple front, Chinese media are reporting that China Mobile's Beijing subsidiary has quietly added the iPhone 4 to the list of models it will support for international roaming plans. (Chinese article) While use of unauthorized iPhones on China Mobile's 2G network has been common ever since the iPhone first debuted, this official support for Apple could indicate that China Mobile may be very close to striking a deal to offer official iPhone service that can run on its 3G network using homegrown Chinese technology. The company announced last year it was in such talks with Apple, and a low-key visit to its headquarters in June by Apple COO Tim Cook fueled speculation that a deal could be near. (previous post) The talk alone has helped China Mobile's languishing stock to regain some of the momentum it has lost over the last few years to more nimble rivals China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU), which also have the advantage of using better technology in their 3G networks. Adding to the growing excitement around China Mobile's "rebirth", Chinese media are reporting that Xi Guohua, who recently took over the role of secretary of China Mobile's state-run parent from Wang Jianzhou (previous post), has now assumed the title of vice chairman at the listed company as well. (Chinese article) Xi's rapid rise, coupled with last year's elevation of another up-and-comer, Li Yue, to president of the listed China Mobile, seem to indicate that Wang's departure from the company could be imminent, bringing in much-needed new blood and fresh ideas to the top of this cash-rich but otherwise stagnant telecoms giant.

Bottom line: China Mobile's imminent arrival of top new leadership and an iPhone deal will breath new life into the company's business and also its stock, following years of stagnation.

Source:youngchinabizblog