China Unicom Expects iPhone to Become Best Selling Smartphone in China

| News

Though China Unicom may have only sold about 5,000 iPhones in the first weekend of availability, the company's chairman, Chang Xiaobing, told reporters Tuesday the he expects the device to become the country's top-selling smartphone.

Bloomberg reported the comments, which were made in the first press conference by the company since the device's launch late in October. There, he told reporters, "We're very confident about the market position of the iPhone."

Mr. Chang didn't offer details on how this would happen, nor how his company would overcome the obstacle of the device's retail price tag, where the 32GB iPhone 3GS sells for 7,999 yuan (US$1,172). Like many emerging markets, China's cellphone market is not based around a carrier-subsidy model. Consumers usually pay the full price for their mobile devices.

In the U.S. and many European markets, carriers subsidize the price of the iPhone in the form of direct payments to apple. So, while the U.S. price of the 32GB iPhone is $299, Apple is getting as much as $400-$500 in payments from AT&T once the phone is activated.

As is the case with other U.S. carriers, AT&T expects to make back that money and earn a profit over the two-year lifespan of the required contract necessary to get that price. Even with China's booming economy of the last 10-15 years, $1,000 is a steep price to pay for a mobile device.

The initial sales numbers of 5,000 iPhones in the country, which is the world's largest cellphone market, were considered disappointing by analysts in Asia and the West alike.

Sign Up for the Newsletter

Join the TMO Express Daily Newsletter to get the latest Mac headlines in your e-mail every weekday.

Comments

Bryan Chaffin

I’ve no doubt that China Unicom will sell more iPhones, and that it will do better as the company adjusts its marketing and approach.

The price issue, however, is real. I bet something will change in some way in this area sooner, rather than later.

coaten

I recall thinking to myself when visiting China that if I could sell one umbrella to every 1000th person, I’d be a rich man. Top selling smartphone in China? That’s gonna pull some bucks.

computerbandgeek

I expect to be the richest man in the world sometime in the near future, but I’m not going to make a plan as to how this is going to happen…

Constable Odo

Well, he runs the company, so I guess he’s expected to say he thinks the iPhone will be a success.  Surely he doesn’t want to admit that he made a mistake.  He could decide to eventually start taking losses on every iPhone sale in order to move the product.  It may be too early for that now because China feedback is too slow in coming.  iPhones could be selling relatively well and it would take us about a month to find that out.  No matter how the Chinese get their hands on iPhones, Apple is still making money.

Log-in to comment