As reported by WSJ. Just like Pakistan, Chinese consumers are unofficially enjoying iPhone already. Imported iPhones currently sell on the gray market in China for as little $680, and those have Wi-Fi (the official phones will not have Wi-Fi because of a Chinese govt regulation). Unicom’s challenge will be to price the iPhone at a level that is competitive but still doesn’t hurt its average revenue-per-user.
The highly anticipated release of the iPhone in China — which has 687 million wireless subscribers, more than twice the population of the U.S. — is expected to be a boost for both Apple and Unicom, one of three Chinese state-owned telecommunications carriers. Still, the two companies face challenges to realizing the iPhone’s potential in China, including competition from similar devices, and the companies left several key questions about pricing and other details unanswered Friday.
The release of the iPhone in China could turbocharge overseas growth for what is already Apple’s fastest-growing product. China is the world’s largest mobile market by subscribers, with some 687 million subscribers. That compares with more than 270 million subscribers in the U.S.
In China, however, touch screens are hot, and there are already a number of popular models that have no keypads. The Apple name has value as a status symbol, and Internet usage through cellphones is increasing.
Competing products are already in the works in China, adding urgency to the iPhone’s launch. China Mobile Ltd., the country’s largest carrier by subscribers, plans to start selling smart phones with similar functions to the iPhone this year based on Google Inc.’s Android operating system. On Monday, Taiwanese phone maker HTC Corp. announced it plans to launch seven third-generation phones, including at least one Android phone, with China Mobile by next year.
Launching the iPhone in China would likely boost Apple’s small presence in the country. Apple currently has less than 1% market share in personal-computer shipments in China. In the second quarter, Apple sold only about 36,000 units out of 11.7 million PCs shipped in China, according to IDC.
One indication of the iPhone’s strong potential in China is the thriving underground iPhone market that already exists there. Though the device isn’t officially available, BDA estimates there are already 1.5 million iPhones in use in China, and the handset is on sale everywhere from online vendors to resellers of Apple products in sprawling electronics malls.
People can use the iPhone and buy applications on Apple’s iTunes store by unlocking the device with software that enables it to work with any network operator, even if they aren’t approved by Apple.
No comments:
Post a Comment