Telecom service provider China Mobile will start selling Apple iPhone 5c and iPhone 5s to its 3G and 4G subscribers in the country from 17 January.
The deal between Apple and China Mobile will be a big boost to India, which is yet to see mass roll out of TD-LTE networks.
These phones will also be available at Apple retail outlets in China.
China Mobile, the world’s largest telecom operator based on 760 million mobile subscribers, will announce the price of Apple iPhone 5c and iPhone 5s smartphone later. Apple iPhone on China Mobile will support its 4G/TD-LTE and 3G/TD-SCDMA networks.
China Mobile 4G
China Mobile now has over 1.2 million 2G/GSM, 3G/TD-SCDMA, 4G/TD-LTE base stations and over 4.2 million Wi-Fi access points, providing broad coverage to quality networks for iPhone 5s and iPhone 5c customers.
In addition, China Mobile is rolling out the world’s largest 4G network. By the end of 2013, China Mobile’s 4G services will be available in 16 cities including Beijing, Shanghai, Guangzhou and Shenzhen.
By the end of 2014, China Mobile plans to complete the rollout of more than 500,000 LTE 4G base stations, which will cover more than 340 cities with 4G service. The collaboration between Apple and China Mobile will give a big boost to the development of China’s home grown 4G/TD-LTE technology. iPhone on China Mobile supports major cellular network standards, making a global phone a reality for China Mobile customers.
Reliance Jio, Airtel to benefit
India’s 4G service providers Reliance Jio Infocomm and Bharti Airtel will benefit if there is any significant decrease in the price of TD-LTE phones from Apple. Aircel, owned by Maxis of Malaysia, is also looking at launching 4G in 2014.
Apple in China
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.
The deal enables Apple to significantly enhance market share in the global smartphone market in coming quarters.
“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 said: “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.”
According to AFP report, 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.
The market tracking firm estimated that Apple could sell as many as 24 million iPhones on the China Mobile network next year if it were added to the network’s formal line-up.
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.
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.
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.