Apple Inc. (NASDAQ:AAPL) has recently closed a deal with the China Mobile network provider – in a nutshell, Apple has convinced the provider to start selling iPhones on the Chinese mobile market, given the substantial opportunities posed by it (hundreds of millions of potential buyers).
Foxconn Technology Co. is known as the manufacturer of Apple, as it has been creating products for several years now – the company has recently shipped more than one million iPhone 5S units to the China Mobile Network provider, just before the iPhone 5S launch was scheduled on Friday. This is only the first shipment to the Chinese provider and there will certainly be more to come, although Foxconn Technology is yet to be informed about the future supplies of iPhone 5S units to China Mobile.
The Chinese customers were already able to pre-order the much-awaited iPhone 5S starting with Christmas last year, as China Mobile started to take pre-orders exactly on December the 25th. In spite of the fact that people expected the iPhone manufacturer to ship as much as 25 million new units to China Mobile this year, it seems that the total number of units will be half that much – Apple is said to be shipping only 12 million units throughout 2014, even though it can be even lower than that. The total number of units to be shipped will certainly be a good indicator of how beneficial is the deal between China Mobile and Apple Inc.
However, as some analysts claim, Apple Inc. only sells approximately two million iPhone units in China on a monthly basis, and shipping half of that number to just one carrier (China Mobile, in this situation) means that Apple does have big plans ahead. Two other notable network providers that sell this smart phone in this country are China Unicom and China Telecom, both of which have been commercializing the device since September 2013. China Mobile is the latest provider to join these two.
Apple’s plans to dominate the Chinese mobile market certainly seem to take effect, given the fact that the company has managed to sell over 18 million units in this country during the first three quarters of last year, and statistics are very encouraging from that point of view. At the moment, Apple Inc. is the third biggest smart phone provider in China, right after Samsung Electronics and Lenovo Group (the latter has a market share of approximately one fifth, while the market share of the Lenovo Group Limited was of 13% in 2013).