Despite LCD order cuts, leading analyst bullish on Apple due to China Mobile negotiations

Despite recent pessimism about Apple due to cuts in the company’s orders with LCD displays, a leading analyst remains bullish about the company’s outlook.

According to BGR, Topeka Capital Markets analyst Brian White sent a note to investors arguing that the potential of a deal with China Mobile presents a strong growth opportunity for the company.

White also notes the company could “reinvent” the TV industry in the next couple of years.

“The negative Apple story of the week is around major reductions in orders with the LCD panel makers; however, this is hardly a surprise given the order cuts across the rest of the supply chain in December and the excess orders placed by Apple with the panel makers to insure sufficient capacity,” White says.

“The negative sentiment around the stock has reached epic levels that we haven’t seen in recent memory and yet we believe the product portfolio has never been stronger.”

As SmartCompany reported on Monday, Apple chief executive Tim Cook the chairperson of China Mobile in Beijing as part of negotiations to get the iPhone released on the network, which is the world’s largest mobile phone carrier by subscribers.

China mobile has an estimated 700 million subscribers, a subscriber base roughly twice the population of the US.

While the iPhone is available in China through China Mobile’s competitors, including China Unicom and China Telecom, negotiations with China Mobile have stalled for years over the topic of revenue-sharing between the two companies.

The situation is made more difficult for Apple because China mobile uses proprietary TDMA-based standards for its 3G and 4G networks, while most other carriers offer 3G and 4G over Wideband CDMA.


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