Tomahawk, WI 12/23/2013 (BasicsMedia) – After nearly six years of intense lobbying and negotiation which have sometimes resulted in disappointing news and stock slide, Apple Inc. (NASDAQ:AAPL) has finally inked a deal with China Mobile. This is a multiyear accord which will start offering next year January.

The two companies were expected to make the conclusion on the deal on Dec 18, but the day came and passed without the expected news. Both companies have been facing growing competition in the market as can be seen in their declining market share. But the signing of this iPhone offering deal is expected to change the way things are presently.

Whose Christmas is it?

Investor may want to know the ultimate winner in the Apple – China Mobile deal.  As alluded to in the above paragraph. Both companies have been facing hard times in the market in the past several quarters. In this regard, they needed each other, however, the psychological played out in such a way that Apple Inc. (NASDAQ:AAPL) was desperate for the deal.

Let’s pick on China mobile first. The carrier operates in a market of about 1.2 billion subscribers. It controls about $760 million subscribers in this market, giving it the lion’s share. However, it has been under pressure from rivals who are leaving nothing to chance in trying to attract big user base.

China Mobile’s rivals such as China Unicom and China Telecoms had already entered into iPhone offering deal with Apple Inc. (NASDAQ:AAPL)  It was thus important that China Mobile also does the same.

Carriers are thrilled at the opportunity to offer iPhone devices because of the fact that they help in attracting high-end subscribers. A good number of these subscribers had started abandoning China Mobile for the rivals’ network and partnering with Apple Inc. (NASDAQ:AAPL)   is going to undo that damage.

As for Apple Inc. (NASDAQ:AAPL), being in China Mobile’s network expose it to a market of more than 760 million buyers. This is a lucrative market given that China Mobile has just unveiled its fourth-generation LTE network which will give users better experience. It is estimated that Apple Inc may realize upto 12 million additional iPhone sales next year.

Overall, by closing a deal with China Mobile, Apple Inc. (NASDAQ:AAPL) is now effectively in the system of China’s three leading mobile operators. This will expand its sales generally and more so in the market where it had started faltering in recent past.

Furthermore, these partnership deals will also help Apple Inc. (NASDAQ:AAPL) to take on the growing competition fronted by phones running on Google Inc (NASDAQ:GOOG)’s Android OS. But even with the deal Samsung Electronic remains the smartphone leader in China.

Chinese deal not enough

As Apple Inc. (NASDAQ:AAPL) has learnt in recent times with the decline in its sales, sealing a deal with the Chinese mobile operators is not enough. The company will have to look to more similar deals in more markets as an affirmative action for iPhones.

There is every reason why iPhones require affirmative action. The increasing number of companies offering cheap smartphones is hurting the opportunities of Apple Inc. (NASDAQ:AAPL). Since the company is never by lucky making price cuts on its products, it would be wise to bring enter into offering deals with more carriers.

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