Updated Dec. 4, 2013 9:02 p.m. ET
China Mobile Ltd. 0941.HK +1.13% China Mobile Ltd. Hong Kong $85.05 +0.95 +1.13% Dec. 5, 2013 10:24 am Volume : 12.08M P/E Ratio 10.70 Market Cap $1677.54 Billion Dividend Yield 4.02% Rev. per Employee $4,065,060 12/04/13 Apple, China Mobile Sign Deal ... 12/04/13 China Mobile and Apple Sign iP... 12/04/13 China Issues 4G Mobile License... More quote details and news » has signed a long-awaited deal with Apple Inc. AAPL -0.23% Apple Inc. U.S.: Nasdaq $565.00 -1.32 -0.23% Dec. 4, 2013 4:00 pm Volume (Delayed 15m) : 13.25M AFTER HOURS $564.41 -0.59 -0.10% Dec. 4, 2013 7:59 pm Volume (Delayed 15m): P/E Ratio 14.16 Market Cap $509.54 Billion Dividend Yield 2.16% Rev. per Employee $2,127,850 12/04/13 Apple, China Mobile Sign Deal ... 12/04/13 China Mobile and Apple Sign iP... 12/04/13 Apple, China Mobile Sign Deal ... More quote details and news » to offer iPhones on its network, a person familiar with the situation said, an arrangement that would give the U.S. technology giant a big boost in the world's largest mobile market.
The rollout of iPhones on the world's largest mobile carrier by users, with over 700 million subscribers, is expected to start later this month, around the time of a Dec. 18 China Mobile conference in Guangzhou, according to two people familiar with the carrier's plans. China Mobile is one of the world's last major carriers that doesn't offer the iPhone.
At the Dec. 18 event, China Mobile plans to unveil a brand for its fourth-generation, or 4G, network. China Mobile executives have said they would only begin to sell the iPhone after introducing 4G services. China's Ministry of Industry and Information Technology said Wednesday it gave licenses to China Mobile and its smaller rivals to operate the higher-speed mobile networks, clearing one of the last hurdles.
An Apple spokeswoman declined to comment.
A deal with China Mobile would give Apple access to a subscriber base that is seven times the size of Verizon Wireless, the U.S.'s largest carrier. Greater China, including Hong Kong and Taiwan, is Apple's third biggest market after the U.S. and Europe in terms of revenue.
But Apple has struggled to gain market share in China in smartphones amid competition from lower-cost rivals. The Chinese market presents a major growth opportunity for Apple at a time when its revenue growth has slowed in the U.S.
Research firm Trefis said China Mobile may sell about 1.5 million iPhones per month, racking up almost 20 million additional iPhone activations in 2014. An additional 20 million iPhones would represent a 17% increase from Apple's unit sales of handsets in the fiscal year that ended Sept. 28.
China Mobile has been in talks with Apple to offer iPhones for several years. But Apple had been reluctant to bring the iPhone to the carrier's unique and relatively unreliable 3G network. In addition, China Mobile had bristled at Apple's insistence on sales volume guarantees.
The Journal reported in September that Apple was preparing to ship its new iPhone 5S and 5C models to China Mobile in a sign that the two sides were moving closer to an agreement.
Using different 3G technology, smaller rival China Unicom Hong Kong Ltd. has offered iPhones since 2009 and China Telecom Corp. began selling iPhones in 2012. But their subscriber bases are smaller than China Mobile's. About a quarter of China Mobile's subscribers are on its 3G network with the rest still on an older second-generation network.
Analysts said Apple has become more eager to tap into China Mobile's big pool of potential iPhone buyers to keep pace with global handset leader Samsung Electronics Co. 005930.SE +0.14% Samsung Electronics Co. Ltd. S. Korea: KRX KRW1434000 +2000 +0.14% Dec. 5, 2013 11:19 am Volume : 65,449 P/E Ratio 7.34 Market Cap KRW238380.27 Billion Dividend Yield 0.07% Rev. per Employee KRW2,485,940,000 12/04/13 Samsung's Next Challenge: Sell... 12/03/13 Corning Uses M&A to Bring Back... 12/03/13 Samsung's New Galaxy Campaign ... More quote details and news »
According to market researcher Gartner, Samsung shipped 32.1% of smartphones world-wide in the third quarter, unchanged from a year earlier. In the same period, Apple's market share fell to 12.1% from 14.3%. Apple's share is expected to grow in the fourth quarter because of the introduction of its new iPhones in mid-September.
Samsung is also the largest smartphone vendor in China, with a 21% market share in the third quarter, compared with Apple's 6% share, according to research firm Canalys.
Mizuho Securities analyst Marvin Lo said China is a very attractive market to handset makers as its smartphone penetration is lower than places like the U.S.
Mr. Lo said China Mobile has the country's wealthiest subscriber base. He estimated that at least 10% of China Mobile's subscribers would be potential iPhone customers.
Write to Lorraine Luk at lorraine.luk@wsj.com and Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
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