Apple and China Mobile have teamed up to launch iPhone 5s and iPhone 5c in the mainland.
The deal, announced Sunday, is expected to add around $10 billion per year to Apple's revenue while bringing in anything between 15-20 million iPhone subscribers to China Mobile.
For the past few months, there were reports tha Apple was close to finalizing the deal with China Mobile but the two companies could not reach any agreement till the Chinese government granted the wireless carrier license to operate 4G network. The license was granted last week to three state-owned carriers, including China Mobile.
The deal is being watched by market analysts as China Mobile is the world's largest wireless carrier boasting of over 760 million subscribers. It is expected to give Apple a fillip in the Chinese market, which Tim Cook said was very important and strategic to Apple's expansion plans.
However, the deal is not good news for Google, whose Android platform was enjoying dominance so long.
"The collaboration between Apple and China Mobile will give a big boost to the development of China's homegrown 4G/TD-LTE technology. iPhone on China Mobile supports major cellular network standards, making a global phone a reality for China Mobile customers," Apple said in a statement.
"Apple's iPhone is very much loved by millions of customers around the world. We know there are many China Mobile customers and potential new customers who are anxiously awaiting the incredible combination of iPhone on China Mobile's leading network. We are delighted that iPhone on China Mobile will support our 4G/TD-LTE and 3G/TD-SCDMA networks, providing customers with high-speed mobile service," said China Mobile Chairman Xi Guohua.
"Apple has enormous respect for China Mobile and we are excited to begin working together. China is an extremely important market for Apple and our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world's largest network," said Apple CEO Tim Cook. "iPhone customers in China are an enthusiastic and rapidly growing group, and we can't think of a better way to welcome in the Chinese New Year than getting an iPhone into the hands of every China Mobile customer who wants one."
Shares of Apple were trading up 3.35 percent at $567.41 on the NASDAQ on Monday noon. China Mobile's shares were up 2.01 percent at $52.67 on the NYSE.