Apple scored a big hit with the announcement Sunday, December 22 have concluded, after years of negotiations, a partnership on the sale of the iPhone with China Mobile, the world's largest mobile operator .
Financial terms of the agreement , which runs for several years, have not been disclosed. It should in any case allow the U.S. computer group to attract millions of new users on the crucial Chinese market , which could run into billions of dollars in revenue .
"China is an extremely important market for Apple and our partnership with China Mobile gives us the opportunity to bring the iPhone to consumers the largest network [ mobile ] world " , welcomed the CEO of Apple Tim Cook, in the joint statement that the two groups announced the news.
" The iPhone users in China are an enthusiastic group and rapid growth," he said.
Apple had previously partnerships in this country with two smaller operators, China Unicom and China Telecom. Discussions with China Mobile lasted for years, and stumbled including the minimum sales volume required by Apple. Through the agreement announced Sunday, the last two iPhone models , 5S and 5C, ultimately available from China Mobile from January 17.
China, a market of $ 25 billion
China is a priority market for Apple, and the only country with the United States to weigh more than 10% of its worldwide turnover . Group sales reached there in total $ 25.4 billion in the year ending September, 13 % more than the previous year. However, they showed a bit of slack in the second half of the year ( -4 %) , and the agreement with China Mobile is expected to raise.
The operator had more than 750 million subscribers in October , and 24 million of them could buy an iPhone next year , according to an analysis of Cantor Fitzgerald Research.
Trip Chowdhry , an analyst at Global Equities Research, a lower estimate of 15 to 20 million units in the first year , but insists that the iPhone is " an anchor product that attracts consumers in the family Apple ":" in all regions , 40 % to 60 % of people who buy an iPhone then also buy an iPad, and 10% to 20 % a ( computer ) Mac , " he says .
The announcement Sunday is " very important from a financial point of view, because none of these figures have been taken into account in estimates of analysts " on the future performance of Apple, he says.
It also considers the positive agreement for China Mobile in terms of image, but also because the iPhone buyers " are heavy users of mobile data services ."
The iPhone deal with low cost devices
China Mobile has its own telephone network of third generation (3G ), which was previously only compatible with any iPhone model. The government also awarded him in early December , as the other two operators , licenses to develop a network of fourth generation (4G) more efficient.
Research firm IDC estimated that a total of 450 million smartphones could be sold next year in China, where the iPhone will, however, faces competition from better equipment market.
Ramon Llamas, IDC analyst recognizes that Apple could create " difficulties in the niche high -end " to the South Korean Samsung or some Chinese manufacturers , but believes it should not completely sweep the competition Chinese market.
"It remains to see the price, and how the iPhone will be available to customers of China Mobile. Even with 700 million customers, all can not afford it ," he warns.
Apple can still afford to be more aggressive in its tariffs in other countries. " The margins in China could be a little better , because the product is made in China " and that there was therefore "no shipping costs " , argues Trip Chowdhry .
Financial terms of the agreement , which runs for several years, have not been disclosed. It should in any case allow the U.S. computer group to attract millions of new users on the crucial Chinese market , which could run into billions of dollars in revenue ."China is an extremely important market for Apple and our partnership with China Mobile gives us the opportunity to bring the iPhone to consumers the largest network [ mobile ] world " , welcomed the CEO of Apple Tim Cook, in the joint statement that the two groups announced the news.
" The iPhone users in China are an enthusiastic group and rapid growth," he said.
Apple had previously partnerships in this country with two smaller operators, China Unicom and China Telecom. Discussions with China Mobile lasted for years, and stumbled including the minimum sales volume required by Apple. Through the agreement announced Sunday, the last two iPhone models , 5S and 5C, ultimately available from China Mobile from January 17.
China, a market of $ 25 billion
China is a priority market for Apple, and the only country with the United States to weigh more than 10% of its worldwide turnover . Group sales reached there in total $ 25.4 billion in the year ending September, 13 % more than the previous year. However, they showed a bit of slack in the second half of the year ( -4 %) , and the agreement with China Mobile is expected to raise.
The operator had more than 750 million subscribers in October , and 24 million of them could buy an iPhone next year , according to an analysis of Cantor Fitzgerald Research.
Trip Chowdhry , an analyst at Global Equities Research, a lower estimate of 15 to 20 million units in the first year , but insists that the iPhone is " an anchor product that attracts consumers in the family Apple ":" in all regions , 40 % to 60 % of people who buy an iPhone then also buy an iPad, and 10% to 20 % a ( computer ) Mac , " he says .
The announcement Sunday is " very important from a financial point of view, because none of these figures have been taken into account in estimates of analysts " on the future performance of Apple, he says.
It also considers the positive agreement for China Mobile in terms of image, but also because the iPhone buyers " are heavy users of mobile data services ."
The iPhone deal with low cost devices
China Mobile has its own telephone network of third generation (3G ), which was previously only compatible with any iPhone model. The government also awarded him in early December , as the other two operators , licenses to develop a network of fourth generation (4G) more efficient.
Research firm IDC estimated that a total of 450 million smartphones could be sold next year in China, where the iPhone will, however, faces competition from better equipment market.
Ramon Llamas, IDC analyst recognizes that Apple could create " difficulties in the niche high -end " to the South Korean Samsung or some Chinese manufacturers , but believes it should not completely sweep the competition Chinese market.
"It remains to see the price, and how the iPhone will be available to customers of China Mobile. Even with 700 million customers, all can not afford it ," he warns.
Apple can still afford to be more aggressive in its tariffs in other countries. " The margins in China could be a little better , because the product is made in China " and that there was therefore "no shipping costs " , argues Trip Chowdhry .
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