The partnerships could significantly boost the demand for iPhones in China and address the high-end subscriber base, the brokerage said, adding that the potential deals could likely add up to $10 a share to Apple's earnings in 2013.
China Unicom, which is the sole official iPhone carrier in China, has only 10 percent of high-end subscribers in the country. China Mobile accounts for 80 percent of them (120 million) and China Telecom has the other 10 percent, the brokerage said.
"We see a bull case of nearly 60 million iPhones sold annually in China in a few years, assuming a 2-year life cycle and U.S.-like market share within high-end China subscribers," analysts at Morgan Stanley said in a report dated Jan. 29.
Apple has been facing problems in China as the network technology is not sufficient to fully support iPhone and iPad capabilities, while other handset makers supply phones that support the various mobile standards used in China.
However, demand for Apple products is so strong in China that smuggling of real iPhones and sales of fakes are on the rise.
Apple recently stopped selling its latest iPhone 4S in its retail stores in Beijing and Shanghai as demand for the phones led to a near-riot situation in one of its stores. (Reuters)
