After a long time, Apple confirmed they have entered
into a multi-year agreement with China Mobile to officially carry the
iPhone.
As part of the agreement, iPhone 5s and iPhone 5c will
be available from China Mobile's expansive network of retail stores as well as
Apple retail stores across mainland China beginning on Friday, Jan. 17, 2014.
Pricing details will come later, Apple said. iPhone 5s, the most
forward-thinking smartphone in the world and iPhone 5c, the most colorful
iPhone yet, will be available for pre-registration from China Mobile's official
website (www.10086.cn)
and customer service hotline "10086" beginning on Wednesday, December
25, 2013.
 |
| iPhone 5C |
“Apple’s iPhone is very much loved by millions of
customers around the world. We know there are many China Mobile customers and
potential new customers who are anxiously awaiting the incredible combination
of iPhone on China Mobile’s leading network. We are delighted that iPhone on
China Mobile will support our 4G/TD-LTE and 3G/TD-SCDMA networks, providing
customers with high-speed mobile service.” China Mobile Chairman Xi Guohua said
in a statement.
 |
| iPhone 5S |
The iPhone will help China Mobile promote a new
fourth-generation network. But analysts say Apple needed the agreement more
than the Chinese carrier. That gave China Mobile leverage in negotiations over
how to split costs, which for the high-priced iPhone usually includes
subsidizing handset sales.
The iPhone faces tough competition from cheaper
smartphones running Google’s Android software. Collectively, Android phones far
outsell Apple’s iPhone.
Apple CEO, Cook said he is excited to begin working
with China Mobile. “China is an extremely important market for Apple and our
partnership with China Mobile presents us the opportunity to bring iPhone to
the customers of the world’s largest network,” Cook said. “iPhone customers in
China are an enthusiastic and rapidly growing group, and we can’t think of a better
way to welcome in the Chinese New Year than getting an iPhone into the hands of
every China Mobile customer who wants one.”
Apple’s share of China’s smartphone sales declined
to 6.2 percent in the third quarter from 7.9 percent a year earlier, according
to Canalys. Samsung’s share expanded from 14.1 percent to 21.2 percent over the
same period.
Through China Mobile, Apple could sell millions
of iPhones on next year, according to analyst estimates. Piper Jaffray sees the
potential for 17 million sales by China Mobile, while ISI analyst Brian
Marshall said sales could reach nearly 39 million iPhones next year.
Cantor Fitzgerald analyst Brian White sees thing
somewhere between those estimates, forecasting calendar 2014 iPhone sales of 20
million to 24 million on China Mobile, while Wedge Partners analyst Brian Blair
sees sales of 18 million to 20 million iPhones. Although the number will depend on how
aggressively Apple and China Mobile promote the iPhone.
“We expect a strong marketing push to follow the official
announcement, and that is what is critical,” Blair
told AllThingsD earlier this month. “It’s Apple’s job to turn the
Chinese consumer away from entrenched brands like Samsung.”
Even before the China Mobile deal, Apple has been
making some inroads in the giant market. According to Counterpoint Research,
the iPhone 5s, 5 and 5c were October’s No. 1, 2 and 4 top-selling smartphones,
with Apple grabbing 12 percent of that month’s market share.
Market Analysts say China Mobile will have to match
those terms to achieve significant sales.
China Mobile wants to have the world’s largest 4G
network. It plans to have 4G services available in 16 cities by the end of 2013
and to provide coverage for 340 cities by the end of 2014.