China Mobile's executive director chairman revealed that the pandemic significantly affected its overall business. He revealed that there has been a decreasing number of its mobile customers in a month while its 4G users also fell by millions. Since the announcement, the public perceived that the loss of subscribers incurred by China's leading mobile company might be caused by the number of deaths brought about by the pandemic. However, such perceptions were defeated when a report claimed that the cause was the shift of Chinese users to other operators.
China Mobile lost 15 million subscribers due to reduced business activity in the country, reported Bloomberg. It has been labeled as the world's largest mobile carrier. The company also declared its first net decline since the year 2000.
According to India Times, people have created sensational claims about the real number of death tolls in China after China Mobile declared significant losses of mobile users in the past month. The report claimed that China Mobile is not only the largest telecom company in China but the number of customers signing up for its services also fell by 60 percent for the first two months this year.
The perceptions were due to the millions of people who stopped using their China Mobile phones. A tweet from Jennifer Zeng went viral on Twitter where she posted a graph that showed China Mobile's declining numbers of subscribers in February alone. The results caused a controversy that the loss of subscribers might be linked to the number of people who died in China due to the pandemic where the coronavirus pandemic was at its peaked momentum.
Some social media websites also showed users discussing the possibility. However, the report did indicate that there could be several legitimate reasons that would explain the significant losses of subscribers to China Mobile.
According to a report by News Track, China Mobile is losing its subscribers due to market competition. It was indicated that after the launch of Reliance Jio, there has been tougher market competition in the mobile industry since it provided for free data and calling facilities in India. It was further discussed that China Mobile is currently experiencing the same market pressures that led to the significant fall of subscribers.
In other news, Simply Wall Street reported that China Mobile limited shareholders recently released its annual results. It showed that its shares have gained 3.6 percent and its stock value is currently at 54.80 HKD per share.
It also revealed that the company's delivering revenues of 746 billion HKD and statutory earnings per share amounting to 5.18 HKD suggested that the business is doing well in its relevant market. Analysts then estimated that the company would generate revenues up to 756.2 billion by the end of 2020. It was also declared that such estimates are approximately in line with the company's achievements in the lasts 12 months.
