Tomahawk, WI 12/06/2013 (BasicsMedia) – Apple Inc. (NASDAQ:AAPL) recently reached a new peak in share prices for 2013 that pushed the company’s market capitalization above $500 billion. With the company closing a deal with China Mobile Ltd. (ADR) (NYSE:CHL) that will see more than 750 million subscribers offered the iPhone, their stock has been on the rise in the past two weeks setting a new high since Nov 6, 2012. China offers the company a huge source for revenue and this is evidenced by the generation amounting to about $26.8 throughout the year.

Why the China Deal is Vital

Analysts agree with the view that the deal with China mobile will improve the sales of Apple Inc. (NASDAQ:AAPL) especially if China Mobile opts to either subsidize or discount the prices of the iPhone. The largely untapped market’s potential for iPhone sales in china is quite considerable and could see the company sell 15 million more devices and push its stocks to the $585 price according to Pacific Crest Securities. Deutche Bank Securities believe that the company can sell 20 million devices that would bring its stock’s prices to $625.

China’s Large Subscription Base

Apple Inc. (NASDAQ:AAPL) and China Mobile have been in talks for a number of years. CEO Tim Cook travelled to china for meetings with China Mobile Chairman Xi Guohua in July where some progress was made on a potential deal. This is a deal that has the capacity to open up the markets for the company to a subscription base that is seven times that of  Verizon Communications Inc. (NYSE:VZ) which is the United State’s largest carrier. In terms of revenue, China, Hong Kong and Taiwan are Apple Inc (AAPL)’s third biggest markets after the United States and Europe.

China Consumers’ Respect For Apple Inc (AAPL) Products

Ben Thompson of tech new website Stratechery pointed out that Apple Inc. (NASDAQ:AAPL) getting into a deal with China Mobile is very big deal. He asked people to ignore those making sarcastic observations about China’s average monthly wage bill being equal to the cost f buying an iPhone 5C. Cantor Fitzgerald analyst Brian White while giving investors a “buy” rating pointed out that China consumers have great respect for the company’s products giving the company an opportunity to tap into the largest carrier in the world.

China Goes High Speed

With China Mobile receiving a license to upgrade to the new generation network that is suitable for iPhones, Apple Inc. (NASDAQ:AAPL) has prioritized China. China Mobile will now attract more smartphone users after moving from the unreliable 3G network that limited its subscription, and to the 4G wireless service that allows smartphones to work seamlessly. This alliance will continue to see the stocks of Apple Inc. (AAPL) gain on the news in pre-market trading.

The company’s stocks have however not changed much despite this being a big victory for the company. In all probability, investors are waiting for the company to confirm this deal before they can begin to react to it. Nobody will deny the fact that this is a major victory for Apple Inc. (NASDAQ:AAPL).

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