Apple (AAPL) Stock Soars on China Mobile Deal
Shares of Apple Inc . (AAPL) were trading up +20.65 or +3.68 percent to $569.21 per share in pre-market trading Monday morning, after the company announced it had entered into a multi-year agreement with China Mobile to bring the Apple iPhone to the Chinese wireless carrier. The deal, which was announced Sunday, opens the Chinese wireless market to Apple.
China currently has an estimated 1.2 billion cellphone users, of which China Mobile services about 760 million subscribers, making the carrier the largest in the world. The deal opens up a huge market for Apple, which could add billions to its bottom line.
Cupertino, California based Apple Inc., formerly known as Apple Computer Inc. is the second largest information technology company in the world by revenue, and the worldâ s third largest manufacturer of mobile phones after Samsung and Nokia. In addition to its line of Macintosh computers, the company also manufactures the iPod music player, the iPad tablet and the iPhone smartphone. The agreement with China Mobile will bring the iPhone to China Mobileâ s 3G and 4G networks on January 17th. Chinese customers will be able to pre-register for service on December 25th. The deal will allow Apple to market its iPhone 5c and iPhone 5s models through China Mobileâ s large network of retail stores, in addition to selling them through Appleâ s own Chinese outlets. In a press release announcing the agreement, Apple Chief Executive Officer Tim Cook stated, â
Published on Dec 23, 2013
By Jay Hawk