On Sunday, Apple (AAPL) announced that it had finally concluded an agreement with China Mobile (CHL) to bring the iPhone to the world’s largest wireless carrier. Not surprisingly, AAPL stock surged more than 3% in Monday morning trading.
The long anticipated deal gives the iPhone-maker access to more than 700 million China Mobile subscribers, about 100 million of which are considered potential customers for the pricey handsets. Analysts had anticipated the deal for months. Getting the iPhone on China Mobile’s network is seen as crucial to boosting Apple’s market share in China, which has been sliding under competition from Samsung and low-price smartphones from Chinese manufacturers, BusinessWeek notes.
AAPL stock has risen this year, recovering some of the ground lost after AAPL stock hit a high over $700 a share in September 2012 and then tumbled more than 40%.
Here are five things to know about the Apple-China Mobile deal:
- The iPhone 5s and iPhone 5c — the only iPhones compatible with China Mobile’s network — will be retailed through China Mobile stores beginning on Jan 17.
- China Mobile will permit customers to re-register to receive the iPhone beginning on Dec. 25.
- A Morgan Stanley (MS) analyst predicts that China Mobile could boost Apple’s overall iPhone sales by 12 million units next year.
- Rivals China Unicom (CHU) and China Telecom (CHA) already carry the iPhone.
- Apple currently holds about 6% of the Chinese smartphone market.