Rumor: Apple?s $1.4 billion iPhone pre-sale to China Unicom

  • Posted: 12 August 2009 12:53 PM

    Picked this up from a few sources last night, including CBN.com. Now on most major tech sites in China. This story may have legs albeit I’m filing it under “rumor” until it’s confirmed by China Unicom HQ in Beijing or Apple ...

    5 million iPhone package sale to China Unicom? Carrefour to be a key China distribution partner?
    http://iphonasia.com/?p=6069

         
  • Avatar

    Posted: 12 August 2009 04:01 PM #1

    I say rumor. The price for each phone is to low. JMO

    Signature

    Adversity does not just build character, it reveals it.

         
  • Posted: 12 August 2009 04:16 PM #2

    Story says China Unicom will pay Apple $292.60 per unit ... iPhone 3GS BOM is reported to be $178.96. Model A1324 for China will come sans WiFi which will reduce BOM cost. It will likely be preloaded w several for China apps that might modestly add to BOM cost. Bottom line ... there’s plenty of margin for Apple in this deal.

         
  • Avatar

    Posted: 12 August 2009 04:22 PM #3

    Yes we shall. Any China announcement will give us a 5-7 $ pop, which is what we all want. :innocent:

    Signature

    Adversity does not just build character, it reveals it.

         
  • Posted: 12 August 2009 05:18 PM #4

    Shipping costs should be significantly cheaper also.

         
  • Posted: 12 August 2009 07:43 PM #5

    Thats 5 billion UP FRONT too. Rumour makes sense to me

         
  • Avatar

    Posted: 13 August 2009 12:31 AM #6

    Come on Snipus, 5 billion up front. The article says 1.4 billion and 5 million phones.

    Signature

    Adversity does not just build character, it reveals it.

         
  • Posted: 13 August 2009 06:24 AM #7

    mbeauch - 13 August 2009 03:31 AM

    Come on Snipus, 5 billion up front. The article says 1.4 billion and 5 million phones.

    OOPS   You are right looks like reversal of a fortune

         
  • Avatar

    Posted: 13 August 2009 10:05 AM #8

    mbeauch - 13 August 2009 03:31 AM

    Come on Snipus, 5 billion up front. The article says 1.4 billion and 5 million phones.

    Bet him a share on it MB :-D :-D

    They just keep adding to the pile of cash…

         
  • Posted: 13 August 2009 11:28 AM #9

    I’m in no rush to see a China deal. No deal is better than a disadvantageous deal. I wonder how negotiations are going on administration of an app store and store proceeds.

    Unique to the iPhone is its ability to foster homegrown development of apps to meet local demand. That’s an advantage to Apple in negotiations. In other words it provides a platform for domestic software development that creates economic opportunities (in addition to the location of manufacture).

    The current constraint on global supply at more lucrative prices than what are being reported should make other territories a priority. A China deal would be nice, but it’s not necessarily a priority at this time. Better to meet the existing global demand first and then the potential for volume, in China considering iPhones are making their way to the mainland through Hong Kong now.

         
  • Posted: 13 August 2009 02:02 PM #10

    So, not only would Apple get less than $300 per iPhone(!), but ChinaUnicom would then sell the phones for a profit that they keep?  That’s a first, isn’t it?  Unsubsidized iPhones in other countries are really expensive, aren’t they?

    Signature

    Off again, on again…

         
  • Posted: 13 August 2009 02:04 PM #11

    At least the pricing for the 16 GB seems reasonable.

    Another source for the story, Yu Zaonan, a manager in Guangdong Unicom?s individual client department, stated that the iPhone will be priced at 2,400 CNY (USD $351) for an 8GB iPhone and 4,800 CNY ($702) for the 16GB model.

    Signature

    Off again, on again…

         
  • Avatar

    Posted: 13 August 2009 02:26 PM #12

    alcatholic - 13 August 2009 05:02 PM

    So, not only would Apple get less than $300 per iPhone(!), but ChinaUnicom would then sell the phones for a profit that they keep?  That’s a first, isn’t it?  Unsubsidized iPhones in other countries are really expensive, aren’t they?

    Unsubsidized prices on Hong Kong Apple store 4488 ($579) 3G 5388 ($695) 16GB 3GS.  I would assume a portion of the sales price goes to the retailer otherwise there would be no incentive to sell the device.  As far as the 300 per phone, we have no idea what components are in the device so it is tough to determine the margin.

         
  • Posted: 13 August 2009 11:00 PM #13

    Upfront cash and cashflow from Apple?s rumored iPhone in China deal
    http://iphonasia.com/?p=6091

         
  • Avatar

    Posted: 13 August 2009 11:50 PM #14

    ChasMac77 - 13 August 2009 01:05 PM
    mbeauch - 13 August 2009 03:31 AM

    Come on Snipus, 5 billion up front. The article says 1.4 billion and 5 million phones.

    Bet him a share on it MB :-D :-D

    They just keep adding to the pile of cash…


    LOL, yea get me started why don’t you. Shot 77/74 today. My putter was frigid, irons were very good. :-D

    Signature

    Adversity does not just build character, it reveals it.

         
  • Avatar

    Posted: 14 August 2009 12:02 AM #15

    idannyb - 14 August 2009 02:00 AM

    Upfront cash and cashflow from Apple?s rumored iPhone in China deal
    http://iphonasia.com/?p=6091

    Danny, I think this person has an agenda. The release of these numbers probably has a negotiation impact. The fact is after taxes you are talking about 330-340 mil on 5 million phones. Does not sound to good to me. I trust Apple will come out better than this deal. JMO of course.

    Signature

    Adversity does not just build character, it reveals it.