Shanghai Daily
Aug 29,2009
CHINA Unicom said yesterday it had reached an agreement with Apple Inc to sell iPhones in China in the last quarter of this year, ending months of speculation about when the highly popular product would finally reach the mainland.
As the only company in China that supports the network standard needed for the iPhone, known as WCDMA, China Unicom will be the sole company offering the phone for now, said its Chairman and Chief Executive Officer Chang Xiaobin.
The models to be introduced under the three-year deal include the iPhone 3G and iPhone 3GS.
"It gives China Unicom a competitive weapon in the high-value subscriber segment," said Sherrie Huang, an analyst at United Kingdom-based consultancy Ovum.
"The cooperation will also open the door for Apple to enter the huge China market," which is the largest mobile phone market in the world, Huang added.
The two parties declined to reveal the financial details or the price of iPhones, but Chang said the price will be competitive.
Sources told Shanghai Daily that China Unicom will buy iPhones from Apple for as low as 3,000 yuan each, compared with 4,000 yuan for the cheapest ones that are currently smuggled into the mainland.
Other issues that remain unanswered include whether the iPhone to be sold domestically will retain its Wi-Fi capability, which is not yet available on the mainland. Would-be buyers are also waiting to find out about subsidy packages for phone purchases and telecommunication fee packages to be bundled with iPhones.
Among China's nearly 700 million mobile subscribers, an estimated 10 million have bought overseas iPhones on the mainland, according to Ovum. But those phones had to be "unlocked" -- a procedure that is not authorized by Apple -- so they could be used with Chinese mainland telecommunications systems.
Competition to mount
The iPhone's entry is also expected to trigger more intense competition within China's third-generation telecommunications market, analysts said.
"IPhone, a combination of fashion and high tech, will attract high-end consumers. More important, the wide screen and open platform will boost the 3G applications in the market," said Wu Wenzhao, a telecommunications analyst at Analysys International, a Beijing-based IT consulting firm.
China Mobile launched an online application store, Mobile Market, several weeks ago, providing users services similar to Apple's AppStore. China Telecom is also in negotiations to introduce Palm products into China's mainland.
China Unicom said it aims to expand its 3G network to 335 cities nationwide this year, versus a previous target of 284.