In addition, Apple is expected to launch the iPhone 6 featuring a larger screen size - a segment of the smartphone market that has been dominated by Samsung - next year, which will also give it a boost in China, say analysts.
"There's high demand for large screen phones in China. Samsung will have to counter Apple head on with a premium product, or trickle down to lower price points of around $200 to make up for that loss," said Kang.
Apple is forecast to sell between 15-25 million iPhones through China Mobile's channels in 2014, according to analyst forecasts. Approximately 34 million units have been sold in China during 2013, Counterpoint estimates.
(Read more: Japan success shows why Apple badly needs China)
Rob Enderle, principal analyst at Enderle Group said while the deal will likely boost Apple's share price, it may have a minimal impact on the company's revenue.
"I'm not expecting it to boost Apple's top line much unless they reduce prices more and if they do that it could hurt margins badly as it increases top line growth. A drop in margins could have an adverse impact on Apple's stock price offsetting sharply top line growth benefits," said Enderle.
China Mobile's shares reacted positively to the announcement, rising over 1 percent in early trade.
(What are Apple shares doing now? Click here)
—By CNBC's Ansuya Harjani; Follow her on Twitter: @Ansuya_H