Apple (NASDAQ:AAPL), China Unicom (NYSE:CHU), China Mobile (NYSE:CHL) and China Mobile Momentum

Announcements in China that the Chengdu China Mobile Retail Store is selling Apple's (NASDAQ:AAPL) iPhone 4 16GB, has Ticonderoga excited about the potential, but they note supply chain restraints could hinder initiatives in China at this time, and uncertainties as to how exclusive (if it is at all) the deal with China Unicom (NYSE:CHU) is, and whether China Mobile (NYSE:CHL) will get a piece of the action.

Ticonderoga said, "Is China Mobile Starting to Sell the iPhone 4 in Chengdu? Today, the local Chinese character version of the Chengdu Chinese Commercial News reported that the Chengdu China Mobile Retail Store began offering the iPhone 4 16GB version for a prepayment of RMB5,400 and RMB288 per month. Additionally, the article specifically highlights a Chengdu China Mobile advertisement for the iPhone 4 in the Chengdu Commercial Newspaper. This prepayment is RMB480 lower than the China Unicom plan. Recall, China Unicom (NYSE:CHU)(NR) is the only carrier that has an agreement with Apple to sell the iPhone 4, but we have been told that this is not an "exclusive agreement." China Mobile (NYSE: CHL)(NR) has not officially announced an agreement with Apple, and it remains unclear if an agreement is necessary for this type of selling arrangement.

"Apple Well Positioned for Chinese New Year. With the Chinese New Year beginning on February 2, we believe Apple is well positioned to enjoy continued momentum over the holiday in China; however, supply chain constraints remain our biggest concern. During our recent China Tech Tour meetings, we highlighted the iPhone 4 was sold out for two months, and we estimate China Unicom had been unable to fulfill approximately one-third of the iPhone 4 orders. We still believe that China remains in the early stages of catching "Apple fever," and demand for iPhone 4 has been well above the ramp of the iPhone 3GS thus far. During our recent China Tour, various carriers estimated the high-end smartphone market at 100-125 million subscribers, which we believe provides Apple with a significant opportunity for growth in years ahead."

Apple closed Tuesday at $331.29, gaining $1.72, or 0.52 percent. China Unicom closed at $14.42, up $0.02, or 0.14 percent. China Mobile closed at $50.06, gaining $0.09, or 0.18 percent.

Ticonderoga maintains a "Buy" rating on Apple, with a price target of $450 on them.