A three-year agreement has been signed between China Unicom and Apple Inc on Friday, under which Apple iPhones will be sold in China, most likely in the fourth quarter this year.

It was forwarded by China Unicom Chairman and Chief Executive Chang Xiaobing at a news briefing that two versions of the third-generation iPhone would be provided by the company.

China Unicom, which is China's second-largest mobile carrier by users, predicts the iPhone will provide the company with a long-sought competitive edge over its larger rival, China Mobile Ltd. (CHL). Thus, via this, it will be able to lure the elite customers of Chinese cities, for whom cell phones are often status symbols.

It should be noted that at the end of July, China Unicom had 141 million users, as compared with 498 million for China Mobile - which is the maximum number for any carrier in the world.

Though no details regarding the iPhone plans were provided by China Unicom; but, investors are waiting with bated breath, the details on pricing, the service package, and the extent of handset subsidies. As of now, it is also not clear whether the device's Wi-Fi Internet function will have to be disabled to comply with Chinese regulations.