Apple Just Gave You Another 600 Million Reasons To Buy It

As if you needed more reasons to go long Apple

. According to a report from

China Mobile

may be indeed getting the Apple iPhone, at least if you believe Chinese newspapers. The Forbes report says that the world's largest cell phone company and the world's most popular phone have agreed to join forces, and the iPhone will run on China Mobile's CDMA network. With over 600 million subscribers, China Mobile presents an opportunity for Apple that nowhere else in the world provides. There were pictures out

that showed acting CEO Tim Cook meeting with China Mobile executives, presumably to discuss bringing the iconic phone to China Mobile, legally. According to a report from AppleInsider, there were already 4 million iPhones on the China Mobile network, but they are all illegal, as the two companies did not have a deal: until now. When news hit that Cook was meeting with China Mobile execs, Brian White with Ticonderoga Securities was very positive on the smartphone market in China and what it meant for Apple. He said that the the high end phone market for smartphones in China is 100-125 million subscribers, which would translate to potentially $70 billion in revenues. "The numbers speak for themselves," he said in a note to investors. "For example, Apple generated approximately $5 billion in revenue from Greater China during (the first half of fiscal 2011) or 10% of sales compared to $3 billion for all of (fiscal year 2010)." "Traveling to China is a major undertaking and we doubt Tim Cook would be visiting China Mobile unless the two companies were getting close to a partnership," White said. "Essentially, we believe the data points in recent months foreshadow an accelerated relationship between the two companies and we are inclined to believe that an announcement is imminent over the next several months." Supposedly, the two companies will make available iPhone as early as October and as late as early 2012. After Apple reported a

that not even the highest estimates on Wall Street predicted, some thought that this was going to be the next catalyst for Apple going forward. With over $76 billion in cash, and short-term securities, Apple has more cash currently than the U.S. Treasury (I know, the joke is old, but it puts things into perspective), and is probably more dominant and definitely more relevant in America's eyes. China is going to be a huge market for Apple going forward, as revenue in the country rose six-fold from the year ago quarter, and this deal with China Mobile will only make China that much more important. Predominantly, the majority of Apple's revenues have been generated in the U.S. Going forward, it will likely be more even around the world, with Asia seeing huge growth as consumers clamor for the iPhone. Apple just continues everyday to give investors reasons to buy the stock. $76 billion in cash. A 13 forward earnings multiple. Explosive revenue growth. The greatest tech innovator of our time (Steve Jobs). Now it just gave you another 600 million reasons to buy it. Not bad for a company started out of a garage in California.