China Mobile Profits Down for First Half of 2012
Created: 2012-08-17 10:18 EST
It was a difficult first half of the year for China Mobile, the Mainland’s largest cell phone carrier. Although the state-owned company has more subscribers than any other company in China, it made a 1.5 percent profit in the first half of the year, or $9.9 billion, according to a Thursday announcement. It caused their shares to drop five percent after the news got out… the biggest one-day drop in a year.
China’s state-owned phone carriers have been under the gun to improve their networks to support faster data transfer rates for smartphones and tablet PCs.
In a statement, Chairman Xi Guohua said, "We faced a number of severe challenges including the increase in mobile penetration, intensified competition, as well as the impact of new technologies and services that are replacing traditional communications services."
China Mobile said over 33 million accounts were added during the period, as well, putting it at 683 million subscribers strong.