Apple and China Mobile has finally announced that they had reached a long-awaited agreement on bringing the iPhone to the world’s biggest phone company.
The move is predicted to boost the sales of the world’s popular Apple device, though it will definitely face intense competition.
The iPhone is offered in China by two small retailer but the just signed deal will link the Californian company with a bigger network and state-owned China Mobile Ltd.’s marketing power.
Chinese customers like the Apple’s smartphones and they are ready to purchase it, but the next-generation device has been eclipsed by lower-priced smartphones from Samsung and local brands.
The iPhone 5S and 5C will hit the Apple and China Mobile stores next month. The customers of the world’s biggest retailer can register for phones starting Wednesday.
“The iPhone will help China Mobile promote a new fourth-generation network that received government approval this month. But analysts say Apple needed the agreement more than the Chinese carrier,” The Huffington Post writes.
“That gave China Mobile leverage in negotiations over how to split costs, which for the high-priced iPhone usually includes subsidizing handset sales.”
The company’s Chief Executive Tim Cook told the official Xinhua News Agencya year ago that he expects China to surpass the United States as its biggest market. About 50 million iPhones have been sold in China in the past 2 1/2 years, according to analyst estimates.7
China Mobile has more than 750 million mobile accounts. HoweverBernstein Research conducted a research that showed some China Mobile customers prefer smaller carriers for data service.
The Cupertino based company already has agreements with such retailers as China Telecom Ltd. and China Unicom Ltd., which have about 455 million mobile accounts.
Apple keeps on making good deals in this year. Thus, a few weeks ago the iPhone maker purchased the social media analytics startup Topsy, offering for a deal more than $200 million.
Topsy has access to data firehose of the world popular microblogging service. The company provides users with a possibility to analyze tweets, gather sentiment and measure the reach of a campaign, hashtag or message, Mashable explains.
Back in September, the analytics startup rolled out the ability to search Twitter’s entire archive.
Industry expecrts claim that it was unlikely that the Californian firm and Topsy startup would have agreed to a deal without Twitter’s blessing.
An Apple spokeswoman confirmed the deal but didn’t provide any further comments.
“Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans,” she said.
Susan Etlinger, industry analyst at Altimeter Group, told reporters that Topsy’s analysis could help the iPhone maker recommend songs, movies and TV shows to iTunes users.
Topsy engineers are predicted to help Apple learn how to extract similar insights from other large data sets.
Apple “could benefit from a more forward looking view of what people’s interests are,” Ms. Etlinger explained. “Twitter is optimized for understanding conversations around entertainment.”