Subscribe free to our newsletters via your
. 24/7 Space News .

Apple, China Mobile sign iPhone deal
by Staff Writers
New York (AFP) Dec 23, 2013

Apple on Sunday unveiled a long-anticipated deal with China Mobile, the world's biggest wireless carrier, to bring the iPhone to customers in a market dominated by low-cost Android smartphones.

The deal gives Apple a bigger entry into the huge Chinese market and China Mobile's estimated 760 million subscribers. The network is also rolling out the world's biggest 4G network.

Under the agreement, iPhone 5s and iPhone 5c phones will be available at China Mobile and Apple retail stores across mainland China starting January 17, Apple said in a statement. Pricing details were not announced.

"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," said China Mobile chairman Xi Guohua.

Apple chief executive Tim Cook stressed that "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."

He 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."

Negotiations between Apple and China Mobile took years, with one key hurdle reportedly being the US firm's demand for sales volume guarantees.

Analyst Horace Dediu at the consultancy Asymco said a conservative estimate of four percent of China Mobile customers would yield sales of some 30 million iPhones in the first year.

Cantor Fitzgerald Research estimated that 35 million to 45 million iPhones were already on China Mobile's network as of October, despite the lack of a deal between the companies.

Apple could sell as many as 24 million iPhones on the China Mobile network next year, Cantor Fitzgerald said.

However, Morgan Stanley analysts recently estimated Apple would add only around 12 million new iPhone sales in the coming year with China Mobile.

Apple drew some $25 billion in revenue from China in the fiscal year ended in September, despite some softness in the second half of the year.

IDC analyst Ramon Llamas said the deal will certainly boost sales for Apple but that what bears watching is how competitors respond.

"I don't think that they will be wiped out -- remember, iPhones are expensive -- but for those who are competing in the high end of the market like Samsung or some of the Chinese vendors like Huawei, ZTE and Lenovo, having a presence in the mid-range will help deflect the challenges in the high end posed by Apple," Lamas said in an email.

IDC forecast that smartphone sales in China will reach 360 million this year and, with the issuance of 4G network licenses and iPhones launched on China Mobile, top 450 million in 2014.

China Mobile has a unique 3G standard of its own that is not compatible with any existing iPhone models. Still, the California giant's handsets can be used on other networks in China.

But the Chinese government granted three state-owned operators licenses early this month to offer services on the faster and better quality 4G network, expected to usher in a new era of competition between mobile phone makers.

Apple will still have to compete with low-priced smartphones powered by Google's free Android software.

Earlier this year, Apple rolled out its iPhone 5C, with a slightly reduced cost to appeal to cost-conscious consumers, notably in developing markets.

The unsubsidized price of the iPhone 5C was $550 in the United States but higher in other countries, often due to tax and regulatory costs. In China, the 5C sells at more than $700.

Analyst Ben Bajarin at Creative Strategies said in a tweet that he expects "some kind of subsidy" for the iPhone in China.

"Carriers know the iPhone is the best smartphone on the market at helping them sell premium services. This is why it will always be relevant," Bajarin wrote.

The iPhone 5C is part of Apple's bid to counter the flood of low-cost smartphones from rivals, most of which use the Google Android operating system.

Android's market share rose in the third quarter to 81 percent, extending its lead over Apple's iOS, used on its iPhones, according to an IDC survey.

Even though iPhone sales grew 25.6 percent from a year earlier, the growth was slower than the overall market and Apple's share fell to 12.9 percent from 14.4 percent in the same period last year.


Related Links
Satellite-based Internet technologies

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Never forget a face
Boston MA (SPX) Dec 20, 2013
Do you have a forgettable face? Many of us go to great lengths to make our faces more memorable, using makeup and hairstyles to give ourselves a more distinctive look. Now your face could be instantly transformed into a more memorable one without the need for an expensive makeover, thanks to an algorithm developed by researchers in MIT's Computer Science and Artificial Intelligence Laborat ... read more

Will the Moon be carved-up?

NASA Releases New Earthrise Simulation Video

Most Chang'e-3 science tools activated

China's Lunar Lander May Provide Additional Science for NASA Spacecraft

Mars rover Curiosity gets software upgrade, improved capabilities

Curiosity Team Upgrades Software, Checks Wheel Wear

Opportunity Communications Remain Slow Due To Odyssey Issues

New Views of Mars from Sediment Mineralogy

Only lawyers profit as tech giants go to war over patents

Working With NASA On The Space Structures Of The Future

Sierra Nevada Completes CCDev2, Begins Dream Chaser Flight Test Program

Russia's Putin pledges $1.5 billion for basic science research

China launches communications satellite for Bolivia

China's moon rover continues lunar survey after photographing lander

China's Yutu "naps", awakens and explores

Deep space monitoring station abroad imperative

Spacewalk ends, ISS fix a success

ISS Crew Set for Tuesday Pump Replacement Spacewalk

Astronauts remove faulty ammonia pump during first spacewalk after ISS coolant system goes wrong

No early Christmas? Spacesuit issue delays second spacewalk to fix ISS cooling system

Orbital Launches Completes 40th Consecutive Successful Suborbital Rocket For NASA

NASA Awards Launch Services Contract for InSight Mission

Argentina successfully launches research rocket

Gaia secured inside fairing

Using an Atmosphere to Weigh a Planet

Gaia Mission Could Help Map Exoplanets

First detection of a predicted unseen exoplanet

Astronomers solve temperature mystery of planetary atmospheres

Europe's Gaia telescope detaches from Fregat-MT upper stage

Sailing satellites into safe retirement

Researchers Design First Battery-Powered Invisibility Cloaking Device

'Macrocells' influence corrosion rate of submerged marine concrete structures

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement