China Mobile Offering iPhone

320px-China_MobileConsumers in China can now purchase iPhones. The partnership between Apple and China Mobile, the world’s largest network carrier, has finally come together, giving Apple access to a huge new customer base of over 700 million. China Unicom and China Telecom already have relationships with Apple, making up 15 percent of the company’s sales.

Telecommunications engineer Pedro Zanetti has over 20 years of experience in the industry. He finds the partnership to be a major milestone for Apple. “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 calls on his over three decades of telecom experience as an independent consultant and advisor 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,” Bhattacharya explains.  “For Apple in particular, 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 sell iPhones to just10% of China Mobile’s total subscriber base of 700 million, it would mean 70 million new sales- which would be significantly more than twice of what they would have sold globally last year.”

In terms of the China Market Bhattacharya says, “Apple has the chance to see its share surge upwards after languishing at a mere 6%. A leapfrog in market share would propel Apple to a significant high and would leave them narrowly trailing market leader Samsung. In this way, Apple would have thus achieved their twin objectives of reaching out to a substantial share of the market without having to drop the prices and overall profitability.”

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