China's biggest mobile firm selling Apple iPhone
By Bill Savadove, AFP
January 18, 2014, 12:00 am TWN
SHANGHAI--China Mobile, the country's biggest wireless provider, on Friday started selling Apple's iPhone to millions of customers nationwide, ending a six-year wait in a crucial market for the US technology giant.
Apple is fighting for share in China's competitive smartphone market, and China Mobile's 760 million-strong customer base and its plans to roll out the world's largest 4G (fourth generation) network have both companies forecasting a fruitful union after a long engagement.
China Mobile has priced the iPhone 5s roughly around the same levels as competitor China Unicom.
At official Apple stores prices for iPhones compatible with each of the country's operators are identical — an iPhone 5s with 16 GB of memory costs 5,288 yuan ($867), while a similar-capacity 5c sells for 4,488 yuan.
At a China Mobile branch in downtown Shanghai, university student Jiang Yong picked up a silver iPhone 5s he had pre-ordered.
“The price does feel a bit high at first sight but it is the most advanced iPhone so far, equipped with the most up-to-date network, which is exciting and irresistible,” he told AFP.
Christina Zhang, already a China Mobile customer, bought a gold iPhone 5s, while keeping her existing number.
“I like the gold color, it's really fashionable,” she said.
Although analysts see China Mobile gaining new customers and Apple adding market share in China, they caution that the U.S. company trails South Korea's Samsung as well as Chinese competitors offering cheaper phones.
Samsung commanded more than an 18 percent share of China's smartphone market as of the third quarter last year, according to Chinese consultancy Analysys International, while Apple sat in eighth place with just 3.5 percent.
Apple cannot afford to ignore the world's most populous country, which chief executive officer Tim Cook has forecast will overtake the United States to be the firm's biggest market in future.
The iPhone is already sold through China's two other major telecom firms, 10 Apple stores in mainland China and an online store on Taobao Mall — the leading business-to-consumer marketplace operated by Alibaba Group.
Smuggled iPhones are also widely available in China, carried back from overseas where they are cheaper, sold openly online and through small electronics shops.
“What this partnership does is, it allows us to take the iPhone to a different level in China, to marry it with the fastest network,” Cook told a media briefing in Beijing on Wednesday, according to Dow Jones Newswires.