The deal, which could have added up to $10 billion to Apple's annual revenue, seems to be eluding the company, as China's largest wireless carrier, China Mobile, said it has not yet come to any agreement that would have seen it selling the latest Apple products, including the iPhone 5s and iPhone 5c, in the mainland.

Speaking to reporters on the sideline of a conference, Xi Guohua, the chairman of China Mobile Ltd, said, Wednesday, the company has not inked any deal with Apple. China Mobile is the world's largest wireless carrier with over 700 million subscribers.

The possibilities of the tie-up was first reported by The Wall Street Journal earlier this month. According to the publication, the announcement of the deal was to be made "around December 18". Photos showing China Mobile promoting Apple products in its stores also surfaced on the Internet recently. However, China Mobile said nothing has been finalized and talks are still in progress.

For Apple, China is its second largest market after United States and earlier this year, Apple CEO Tim Cook expressed optimism about expanding company's user base in China. "I continue to believe that in the arc of time here, China is a huge opportunity for Apple," Cook had said.

After China Mobile dashed hopes of a deal, Apple's shares plunged to close at $550.77 on the NASDAQ on Wednesday. On Tuesday, the shares closed at $554.99. At the time of reporting, Apple shares were down 1.20 percent at $544.15.