Apple and China Mobile, the world's largest wireless carrier with over 700 million subscribers, have signed a deal, which is a win-win situation for both companies.
With the deal coming through, it will be easier for millions of Chinese customers to buy the hugely popular iPhone.
According to a CNN report, on Thursday December 4, China Mobile disclosed that negotiations with Apple were "in progress." However, per the Wall Street Journal (WSJ), which cited a source familiar with the matter, the deal has already been inked.
"China Mobile Ltd. has signed a long-awaited deal with Apple Inc. to offer iPhones on its network, a person familiar with the situation said, an arrangement that would give the U.S. technology giant a big boost in the world's largest mobile market," WSJ reported.
With the deal coming through, China Mobile becomes last of the major Chinese carriers to offer the iPhone. The deal will undoubtedly help Apple penetrate deeper and expand its reach in the most populous consumer market in the world, which will in turn give the Cupertino-based company access to a revenue stream that was untapped thus far.
Per the WSJ, the rollout of the iPhones to subscribers is expected to start later this month around December 18 when a China Mobile conference is scheduled to be held in Guangzhou. The carrier reportedly intends to unveil its 4G network at the event.
China Mobile executives have revealed that they will begin the sale of the iPhone only post the introduction of the 4G services. On Wednesday, December 3, China's Ministry of Industry and Information Technology disclosed that it had already given licenses to China Mobile, as well as its smaller rivals, to operate the 4G network.
The new network will replace the 3G one, which was believed to be a stumbling block in the Apple-China Mobile negotiations.
Apple will welcome the deal as it gets access to the largest market outside the U.S. However, the company will face stiff competition from local rivals such as Huawei and ZTE.
Earlier this year, Tim Cook expressed optimism about the company's business in the region.
"I continue to believe that in the arc of time here, China is a huge opportunity for Apple," Cook had said. Per analysts, the deal is expected to generate additional revenues of around $10 billion per year for Apple.
However, Apple won't be the only one benefiting from the deal, as China Mobile too will be able to capitalize on the huge popularity of the iPhone in the country. In the past, the smartphone has met with an overwhelming response and been sold out within a short span of release from Apple Stores.
The terms of the deal remain undisclosed.
