Tomahawk, WI 01/15/2014 (BasicsMedia) –  Apple Inc (NASDAQ:AAPL) was very confident of the deal with China Mobile Ltd. (ADR)(NASDAQ:CHL), the world’s largest wireless carrier. The carrier is expected to start selling the iPhones on its network from this Friday.

The Volumes:

How much can China Mobile deliver for Apple? Analysts are speaking of volumes between 15 and 25 million units for the current model. The realistic volumes could also be about 12 million. In fact, Apple Inc (NASDAQ:AAPL)’s manufacturer Foxconn Technology Co., Ltd has shipped the first batch of iPhone 5S containing 1.4 million units. Supply of any number over 1 million to a single company is great news indeed. The future is far from perfect as Apple has not disclosed the second batch numbers. Considering China Mobile’s millions of subscriber base, the first batch is not expected to last long. The deal is so important that even Apple’s CEO, Tim Cook has commented on its importance. Once they have a partnership going smoothly, both companies can look forward to developing products aimed specifically at the Chinese markets.

China is a different ball game. There are many smartphone manufacturers in China itself and the competition is very heavy. Smartphones can retail at a fraction of the price of an iPhone. Though branding is important, price is a major factor. Given its population and its growing economic prosperity, China cannot be ignored.

Low Priced iPhone:

Many people have been commenting on the need for Apple to develop a low cost model for the Chinese and Indian markets. In fact, the deal with China Mobile can drive Apple into designing such a product. Apple Inc (NASDAQ:AAPL) knows that it cannot spoil its world markets even for these two important markets and any decrease in prices through discounts could haunt it in other places. “Apple has always been about making the best products, not the most products, so that’s always our North Star and that’s not going to change ever,” Cook said. But the company as launched several payment plans as well as buy-back offers in the emerging markets to get around this.

With the Chinese New Year just around the corner, the deal as well as the shipment came at the most oportunate time. People exchange gifts during this time and many of them lean towards smartphones for their near and dear ones.  This is very similar to the buying rush seen during Thanksgiving and Christmas in the western countries.

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