Apple has signed a deal with China Mobile, the largest mobile
carrier in the world, to offer its iPhone. The deal will give Apple
access to 700 million customers, and if all goes according to Apple's
plan, a big sales boost along the way.
The news was first reported by The Wall Street Journal, who says China Mobile will introduce the iPhone alongside its new 4G network on 18 December at a conference.
As Apple has struggled to gain market share in China against rivals, many questioned why the company was waiting so long to ink a deal with the largest carrier worldwide. To offer a little perspective, China Mobile is seven times Verizon Wireless, the US' largest mobile carrier.
The iPhone 5S and iPhone 5C released in September added network compatibility with China Mobile's unique TD-LTE and TD-SCDMA networks. The number two and three carriers China Unicom and China Telecom have been offering the Apple-line for quite some time now.
The deal will mean big business. Analyst Amit Daryanani of RBC
Capital Markets said in a note directed to investors earlier this week
that Apple will garner another $9 billion to $10 billion in annual
revenue from a deal with China Mobile.
“In terms of geographic distribution, we saw highest growth in China, and it was into the triple digits,” Cook said in January, indicating how important the region is to Apple.
Over the years, it's been reported that 42 million subscribers chose to purchase an iPhone off-contract through a third-party and then use it on China Mobile. Those customers are subject to 2G speeds, thanks to older iPhone network compatibility.
Soon, customers will be able to buy a smartphone directly through the carrier, and we'll see Apple's revenue rise in the process.
The news was first reported by The Wall Street Journal, who says China Mobile will introduce the iPhone alongside its new 4G network on 18 December at a conference.
As Apple has struggled to gain market share in China against rivals, many questioned why the company was waiting so long to ink a deal with the largest carrier worldwide. To offer a little perspective, China Mobile is seven times Verizon Wireless, the US' largest mobile carrier.
The iPhone 5S and iPhone 5C released in September added network compatibility with China Mobile's unique TD-LTE and TD-SCDMA networks. The number two and three carriers China Unicom and China Telecom have been offering the Apple-line for quite some time now.
“In terms of geographic distribution, we saw highest growth in China, and it was into the triple digits,” Cook said in January, indicating how important the region is to Apple.
Over the years, it's been reported that 42 million subscribers chose to purchase an iPhone off-contract through a third-party and then use it on China Mobile. Those customers are subject to 2G speeds, thanks to older iPhone network compatibility.
Soon, customers will be able to buy a smartphone directly through the carrier, and we'll see Apple's revenue rise in the process.
Source: The Wall Street Journal
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