Key Milestone for Apple: iPhone Arrives at China Mobile
On December 22, 2013, after extensive negotiations stretched over several years, Apple successfully struck a partnership with China Mobile—the largest telecommunications provider globally—bringing the iPhone to millions of potential new users.
Strategic Partnership with Massive Potential
This landmark agreement opened up access to approximately 760 million prospective iPhone consumers and represents a critical step for Apple in expanding its presence in China. As noted by CEO Tim Cook, this market is poised to become one of the company’s most significant sources of revenue.
Navigating Negotiations and Market Demand
The partnership’s journey was arduous. Since the original iPhone release in 2007, discussions between Apple and China Mobile were ongoing but often stalled due to disagreements over Apple’s revenue-sharing requirements. Despite these setbacks, there was an evident demand among Chinese consumers—evidenced by early reports indicating that between 800,000 and one million iPhones had been illegally used on China Mobile’s network shortly after their launch.
If accurate figures are considered from those estimates regarding unlocks through hacks at that time—a staggering number representing around ten percent of total global sales—they far exceeded the volume of devices being used across Europe.
New Strategies Targeting Chinese Consumers
The momentum for finalizing this pivotal deal gained traction in early 2013 when Tim Cook met with Xi Guohua, Chairman of China Mobile. This discussion emphasized collaborative efforts aimed at bringing Apple’s technology to a wider audience.
The formal agreement aligned perfectly with Apple’s strategic thrust into the Chinese market. To cater specifically to local preferences and trends among users there—including a move towards larger devices—the company pivoted from its previous stance on phone sizes instigated by co-founder Steve Jobs’ reticence towards bigger screens. In response to consumer interests demanding larger smartphones akin to phablets gaining traction across Asia, Apple released the inaugural iPhone Plus model (5.5 inches) in late-2014.
A Rapid Retail Expansion
Additionally, as part of their strategy targeting growth within this region, Apple’s commitment toward establishing new retail locations affirmed their intent within the lucrative Chinese marketplace; they set an audacious goal—increased successes far exceeding initial expectations—to launch up to forty stores by mid-2016 (the latest development sees them opening their fifty-sixth store named “Apple MixC Wenzhou” as recently as November 2023).
