iPhone Kicks Off to Chinese Frenzy (Update 2)

Updated from 10:24 a.m. EST to include additional comments. 

NEW YORK (TheStreet) -- The day finally has arrived.

Friday marked the official launch of Apple's (AAPL) iPhone on China Mobile's (AAPL) cellular network, with a deal that had long been in the making finally coming together. On Wednesday in an interview with CNBC, China Mobile announced there were 1.2 million pre-orders of iPhones. It's obvious that demand is exceptional and implies that despite the high price of the iPhone 5s and 5c in China Apple customers are clamoring for the devices.

A 16GB iPhone 5s will be priced at 5,288 yuan ($874) China Mobile said, with the 64GB model being priced at 6,888 yuan ($1,139). Apple's mid-tier phone, the iPhone 5c, will be priced at 4,488 yuan for the 16GB model.

Apple CEO Timothy D. Cook was in China for the launch of the iconic devices, even going so far as to sign iPhones for adoring fans.

Cook said earlier this week that the relationship between the two companies is only just getting started, as Apple looks to take advantage of China Mobile's roughly 760 million customers, of which approximately 140 million use China Mobile's 3G service. China Mobile recently upgraded its network to start using TD-LTE 4G speeds, which allow customers to surf the Web and receive data at higher speeds.

It's thought that there are already about 40 million iPhones running on China Mobile's network. For the majority of the lives of those phones, users weren't able to take advantage of all the features of the iPhone, simply because a deal between the two companies wasn't official. Now that a deal is in place, there is already a built-in market for Apple to sell to, including some of the more affluent consumers on the world's largest network.

Apple shares were off 1.4% at $546.71 on Friday, while China Mobile was off 0.18% to $50.08.

If you liked this article you might like

Apple Stock Falls as Buzz Dims for iPhone 8 and New Apple Watch

More Trouble for Apple: iPhone 8 Orders Could Be Substantially Low, Analyst Says

Baidu, JD.com Part of Group Investing $12 Billion in China's Unicom

China Mobile Rating Cut at Morgan Stanley

Chinese Companies Are at Risk After Moody's Surprise Downgrade