But analysts at Barclays analysts flagged concerns the wireless operator’s quarterly profit could drop from year-earlier levels. The research house noted that handset subsidies needed to attract smartphone users, estimated by the company at 14 billion yuan ($2.24 billion) in the second half, up from 12 billion yuan in the first half, were likely to drag on the bottom line.
Another problem is dwindling average revenue per user. China Mobile continues to see pressure on revenue growth as many of its medium- and-high-end customers defect to iPhone-supported networks run by China Unicom Hong Kong Ltd. and China Telecom Corp. .