Apple and China Mobile Come to an Agreement

zintroappleApple and China Mobile have finally brokered a much-discussed telecommunications deal. China Mobile is the largest network carrier in the world, boasting approximately 700 million subscribers. Fifteen percent of Apple sales take place in China.

Telecommunications engineer Pedro Zanetti discusses the new deal. “Once China represents the world´s largest mobile market, it is extremely significant for Apple to reinforce its brand in China through the world´s largest mobile phone carrier,” says Zanetti. “The exposure to 700 million users from China Mobile means a market share gap decrease against Apple´s local rivals Lenovo and ZTE.”

Debashish Bhattacharya is an independent consultant and advisor to the telecom industry in India and South Asia. “The impact of Apple’s deal with China Mobile is going to be significant for both sides,” explains Bhattacharya. “For Apple, this represents their biggest deal simply because China Mobile is the world’s largest if not the fastest growing cellular mobile service company. Even if Apple were to get access to a minuscule amount of China’s elite- which let’s say would constitute about 10% of China Mobile’s total subscriber base of 700 million- Apple would have sold approximately 70 million iPhones. That would be significantly more than twice of what they would have sold globally last year.

“Also, in the China Market, which is undoubtedly the world’s largest mobile market, Apple’s share would spiral upwards after languishing at a mere 6 percent,” continues Bhattacharya. “This leapfrog in market share would propel Apple to a significant high and would leave them narrowly trailing the market leader Samsung. In this way, Apple would achieve their twin objectives of reaching out to a substantial share of the market without having to drop the prices and overall profitability.”

Consultant Jaime Numhauser points out, “The satisfaction of customers in the cable industry is more important each day for two reasons. First there is the natural relationship in this kind of business, where the customer is always present. And secondly is the wireless paradigm. This means to reconcile, compensate, or muffle customer experience that each day is increasingly linked to the independence of wireless in more and more aspects of current life.”

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