Apple (AAPL) was erratic on Thursday. At one point, it reached $577.25 and if market closed with this price, it will be the highest of Apple (AAPL) stock price since Nov 6, 2012. The surge came as a result of the Wall Street Journal's report that a "person familiar with the situation," - the situation that of the closing of the Apple-China Mobile deal - had been signed and drawn into conclusion.

China Mobile is about to launch its fourth-generation network on Dec 18 and this had sparked rumours that Apple's iPhone will be included in the said launch.

However, Apple (AAPL) stock closed at a decreased price of $567.90. Analysts noted that it closed a bit low after Reuters reported that China Mobile had denied the WSJ report.

"We are still negotiating with Apple, but for now nothing new to announce," Rainie Lei, a spokesman for China Mobile told Reuters.

Meanwhile, Apple (AAPL) real time quote as of Dec 12, as published by NASDAQ OMX, is at $566.61; today's high at $577.38, today's low at $564.1299; 52-week high at $569.25; 52, week low at 385.10.

China Mobile's share, on the other hand, rose 0.5 per cent to close at HK$84.7 in Hong Kong on Thursday.

The importance of the China Deal

Analysts seemed in unison in predicting that the deal with China Mobile will boost Apple's sales, particularly if China Mobile offers the iPhones at a subsidised or discounted price.

Apple can possibly sell 15 million more iPhones each year and could set its stock price at $585 with the China Mobile deal, said analysts from Pacific Crest Securities.

In a prediction made by analysts at Deutche Bank Securities, it said Apple can sell 20 million more iPhones in a year and could have its stock price set to $625, saying "China Mobile represents a significant, largely untapped market opportunity."

However, inasmuch as a deal with China Mobile is a "positive development" for Apple, Alex Gauna of JMP Securities noted that China Mobile had already been promoting Android phones on its Web site without any mention of the iPhone.

John Bright, an analyst with Avondale Partners, said that if the China Mobile deal pushes through, Apple's revenue will still be unclear because it can be affected by discounts that China Mobile might be offering its customers.