IBM (NYSE:IBM) Teams Up With Chinese Telecom

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IBM building - IBM is an American multinational technology corporation headquartered in New York.

IBM LondonInternational Business Machines (NYSE:IBM) has teamed up with a Chinese telecom in a new mobile app partnership. The deal will allow the telecom to take advantage of the MobileFirst platform that allows businesses to make cost-effective, scalable applications on the cloud.

Both companies will work together to provide new, innovative solutions to businesses across China.

IBM stock rose to $159.82, or .40%, on the news.

The company is partnering with Chinese telecoms in an attempt to break through a lot of the political obstacles companies face when entering the market. Reports indicate that IBM is in talks with the largest cloud providers and fixed-line carriers in an attempt to further push the company’s products and services.

Many investors are unsure of the partnership with some viewing it as a weakness for IBM. The company’s stock performance has been disappointing this year, and the company’s net income has been on the decline. Analysts also note that IBM has a high debt management, which is a concern for the company.

Despite all of these negative points, IBM has a very high profit margin of 58.23%. Net profit margins of 22.73% are also well above the industry average, which is a benefit for stockholders and potential investors.

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