Updated Jan. 14, 2014 10:18 p.m. ET
BEIJING— Apple Inc. AAPL +1.99% Apple Inc. U.S.: Nasdaq $546.39 +10.66 +1.99% Jan. 14, 2014 4:00 pm Volume (Delayed 15m) : 11.79M AFTER HOURS $546.90 +0.51 +0.09% Jan. 14, 2014 7:59 pm Volume (Delayed 15m): 176,080 P/E Ratio 13.69 Market Cap $478.17 Billion Dividend Yield 2.23% Rev. per Employee $2,127,850 01/14/14 How Could a Mac Pro be Slower ... 01/14/14 Real Keyboards for the iPhone 01/14/14 Foxconn Ships Over 1 Million i... More quote details and news » 's deal with China Mobile Ltd. 0941.HK -1.10% China Mobile Ltd. Hong Kong $76.70 -0.85 -1.10% Jan. 15, 2014 11:52 am Volume : 7.71M P/E Ratio 9.65 Market Cap $1563.98 Billion Dividend Yield 4.46% Rev. per Employee $4,065,060 01/14/14 Apple's China Mobile Deal to E... 01/08/14 Ahead of China Mobile's iPhone... 01/07/14 Apple Opens Store on Alibaba's... More quote details and news » to sell iPhones won't be limited to handsets, but will also entail broad cooperation between the two companies, the chairman of the world's largest carrier said Wednesday.
China Mobile Chairman Xi Guohua said that already multi-millions of Apple's iPhones have been ordered by its customers, signaling strong demand for the device. Apple's iPhones will begin selling at China Mobile, the world's largest carrier by subscribers, starting Friday.
Speaking in a small media briefing to Chinese media and The Wall Street Journal, Apple Chief Executive Tim Cook said he is "incredibly optimistic" about the outcome of the cooperation with the Chinese carrier.
"We've gotten to know each other....today is a beginning, and I think there are lots more things our companies can do together in the future," Mr. Cook said.
The new cooperation with China Mobile is the last piece of the puzzle for Apple in the country, officially making the iPhones available through all three of China's state-run telecom carriers. Though neither Apple nor China Mobile would comment on the exact terms of the deal, Apple is likely to get a considerable bump from China Mobile, which analysts expect to spend generously on marketing and handset subsidies to sell the iPhones. The cooperation also massively expands the reach of Apple's sales channels in China, making the iPhones available in China Mobile's thousands of stores that range across the country from large cities to tiny hamlets.
"As of this weekend we will be selling iPhones in more than 3,000 additional locations," Mr. Cook said. "China Mobile already has a reach to many cities that Apple does not have a reach to."
Still, Apple faces headwinds in China as high prices for the smartphones and a lack of significant carrier subsidies has led consumers to buy cheaper options that run Google Inc. GOOG +2.35% Google Inc. Cl A U.S.: Nasdaq $1149.40 +26.42 +2.35% Jan. 14, 2014 4:00 pm Volume (Delayed 15m) : 2.47M AFTER HOURS $1150.50 +1.10 +0.10% Jan. 14, 2014 7:58 pm Volume (Delayed 15m): P/E Ratio 32.59 Market Cap $375.17 Billion Dividend Yield N/A Rev. per Employee $1,059,710 01/14/14 Appeals Court Strikes Down FCC... 01/14/14 A Weekly Gamble for Options Tr... 01/14/14 What Google Gains From Nest La... More quote details and news » 's Android operating system. According to Apple's China website, the unsubsidized retail price of a 16-gigabyte iPhone 5S is 5,288 yuan ($870), while an iPhone 5C with the same storage capacity costs 4,488 yuan ($738).
Mr. Cook said Apple wants to reach as many Chinese consumers as possible by offering iPhones through China Mobile, and added that the country has more than half a million people writing apps for the U.S. company's iOS operating system.
"Apple has always been about making the best products, not the most products, so that's always our North Star and that's not going to change ever," said Mr. Cook.
While the iPhone remains a highly coveted product for many Chinese consumers, more customers are opting for cheaper options, many of which are produced by local companies like Xiaomi Inc. and Huawei Technologies Co.
Analysts say the new deal will be no panacea for Apple's sales in China, though it could give it a healthy shot in the arm. The deal will give Apple access to China Mobile's more than 700 million subscribers—roughly seven times the customers who use Verizon Wireless, the largest carrier in the U.S. Analysts project the new agreement could bring Apple anywhere from 15 million to 39 million iPhones through the carrier in 2014.
Write to Paul Mozur at paul.mozur@wsj.com
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