22 December 2013
Last updated at 20:09 ET
The Chinese firm has more than 760 million subscribers and
was one of three networks to be awarded China's first 4G licences
earlier this month.
Apple has been looking to boost its sales in China, the world's largest smartphone market, but has struggled amid growing competition from rivals.
The latest deal is expected to help it increase its market share.
"China is an extremely important market for Apple," Tim Cook, Apple chief executive, said in a statement.
"Our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world's largest network."
Earlier this year, Mr Cook said he expected China to replace North America as Apple's largest source of revenue. The iPhone is the firm's most important product in terms of earnings power.
Cheaper rivals
Apple signs iPhone deal with China Mobile
Apple describes China as "an extremely important market"
US technology giant Apple has signed a deal to bring its iPhone to China Mobile - the world's largest carrier.
Apple has been looking to boost its sales in China, the world's largest smartphone market, but has struggled amid growing competition from rivals.
The latest deal is expected to help it increase its market share.
"China is an extremely important market for Apple," Tim Cook, Apple chief executive, said in a statement.
"Our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world's largest network."
Earlier this year, Mr Cook said he expected China to replace North America as Apple's largest source of revenue. The iPhone is the firm's most important product in terms of earnings power.
Cheaper rivals
China is the world's biggest smartphone-using country, with 1.2 billion users.
China's three bestselling smartphone makers are Samsung, Lenovo and Coolpad, according to a recent report by the consultants IDC.
Apple's sales have also in been impacted by the fact that unlike in developed markets, many phone carriers in emerging markets do not subsidise smartphones.
That means that subscribers have to pay the full amount for the phone upfront, making Apple's products relatively expensive for some buyers.
In an attempt to take on the low-cost rivals Apple unveiled a relatively cheaper version of the iPhone, the 5c, earlier this year.
Analysts said the firm was hoping that a cheaper handset combined with a deal with the biggest mobile carrier in the world may help it take on rivals.
However, Apple is yet to announce how much Chinese customers will have to pay for the iphone 5s and 5c models sold via China Mobile.
'Biggest partnership'
Nevertheless, analysts say the deal has huge potential. Cantor
Fitzgerald Research estimates that Apple could sell 24 million iPhones
next year to China Mobile customers alone.
Until now, China Mobile subscribers have not been able to use Apple's iPhone, because the firm's 3G technology was not compatible with Apple handsets.
However, its 4G network will work with the iPhone 5s and 5c.
"This is one of the biggest partnership announcements Apple has made in the past several years," Manoj Menon, managing director of consulting firm Frost & Sullivan, told the BBC.
"It gives them access to more than 10% of the global mobile phone users. It is an incredible growth opportunity for Apple."
However, he added that in order to fully realise the potential of the deal, Apple may need to introduce even more affordable phone models.
The iPhone 5s and 5c will be available to China Mobile subscribers from 17 January.
Continue reading the main story
Manoj Menon Frost & Sullivan"This is one of the biggest partnership announcements Apple has made in the past several years”
But Chinese sales of previous
iPhone models have slumped recently, as consumers have turned to cheaper
rival handsets from Samsung, and domestic Chinese developers.
Apple's sales have also in been impacted by the fact that unlike in developed markets, many phone carriers in emerging markets do not subsidise smartphones.
That means that subscribers have to pay the full amount for the phone upfront, making Apple's products relatively expensive for some buyers.
In an attempt to take on the low-cost rivals Apple unveiled a relatively cheaper version of the iPhone, the 5c, earlier this year.
Analysts said the firm was hoping that a cheaper handset combined with a deal with the biggest mobile carrier in the world may help it take on rivals.
However, Apple is yet to announce how much Chinese customers will have to pay for the iphone 5s and 5c models sold via China Mobile.
Top smartphone vendors in China - Q2 2013 |
|
|---|---|
| Manufacturer | Marketshare |
|
Source: IDC |
|
|
Samsung |
18.3% |
|
Lenovo |
12.6% |
|
Coolpad |
11% |
|
ZTE |
8.8% |
|
Huawei |
8.7% |
|
Others |
41% |
Until now, China Mobile subscribers have not been able to use Apple's iPhone, because the firm's 3G technology was not compatible with Apple handsets.
However, its 4G network will work with the iPhone 5s and 5c.
"This is one of the biggest partnership announcements Apple has made in the past several years," Manoj Menon, managing director of consulting firm Frost & Sullivan, told the BBC.
"It gives them access to more than 10% of the global mobile phone users. It is an incredible growth opportunity for Apple."
However, he added that in order to fully realise the potential of the deal, Apple may need to introduce even more affordable phone models.
The iPhone 5s and 5c will be available to China Mobile subscribers from 17 January.
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