China Mobile Under Pressure as IPhones, WeChat Curb Profit
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China Mobile Ltd. faces a triple whammy of apps, iPhone subsidies and regulations that likely will cost the world’s largest carrier as much as $1.8 billion in profit this year.
The state-run phone company is contending with falling income as customers flock to free messaging applications such as Tencent Holdings Ltd.’s WeChat and buy Apple Inc. devices at a subsidized price. The government also will impose a new telecommunications tax as part of an effort to lower prices and improve customer service.