Apple Inc shares climbed 3.8 per cent at $570.09 after the company has officially announced and confirmed the deal with China Mobile, the biggest mobile carrier in the world. Now Apple Inc is one of the tech stocks to watch out for in 2014 with analysts optimistic of bigger iPhone sales in the Chinese market.
Apple's stock price closed at $570.09 which was the company's highest price per share since Dec 4, 2012. Apple's bestselling iPhones will be available on the world's largest mobile carrier on Jan 17, 2014.
The Apple Inc.-China Mobile deal will enable both companies to attract more customers and gain a bigger share in a market with 1.2 billion subscribers. China Mobile's retail stores will begin selling the iPhone 5C and iPhone 5S on Jan. 17 as indicated in the company's official statement. No financial terms were disclosed. Apple Inc's retail stores in China will also carry China Mobile-compatible phones under the multi-year deal.
China Mobile subscribers who want an iPhone will need to pre-register beginning Dec. 25. According to the statement, the pricing and availability of the iPhones will be announced at a later date.
Before the official announcement, China Mobile is the only major telecommunications company that doesn't offer iPhones. Its rivals, China Unicorn and China Telecom, have already offered Apple's iPhones to their subscribers. Although there are existing iPhone owners using China Mobile, they are limited to a 2G network.
Looking forward to 2014
Motley Fool's Daniel Sparks has noted that despite Apple shares' seemingly weak performance for most of 2013, long-term investors of the company have observed massive gains. Mr Sparks said Apple stocks did not outperform the stock market as a whole in 2012 but investors were rewarded with a modest gain. The analyst also noted that investors who took the chance to put more of their money in Apple Inc shares have seen significant gains in 2013. Mr Sparks believes that the future looks good for Apple now that China Mobile is on board.
Wall Street has reached a consensus that Apple Inc will sell 25 million iPads and 55 million iPhones in the December quarter. Mr Misek has the same expectations. Apple's deal with China Mobile will continue to drive sales for the company in the coming year.
To contact the editor, e-mail: