iPhone launches in China, faces challenges

Jonny Evans
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October 30, 2009
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Apple’s iPhone launched in China this morning, but the introduction of the hot US product has hit a little snag - the first iterations to reach market lack WiFI, even though local law was recently changed to permit inclusion of support for the standard.

Carrier, China Unicom, has reportedly contracted to buy five million iPhones at a cost of $1.5 billion. The ban on WiFi was enforced by central government in Beijing, but lifted in May - when manufacturing of the device had begun.

Lack of the standard may give some Chinese consumers the perception that they are being sold a sub-par version of the product, impacting sales.

A Unicom spokesman, Yi Difei, said the company hopes to have WiFi in the next batch of phones: "We are talking with Apple and expect the problem to be solved by the end of this year," he said.

Unicom's prices range from 4,999 yuan ($730) to 6,999 yuan ($1,025) for the high-end, 32-gigabyte iPhone 3GS. This poses a second challenge for Apple in China - unlocked grey import iPhones (with WiFi) cost around 5,700 yuan ($835) in China’s street markets.

The availability of unlocked iPhones and the lack of WiFi could impact Apple’s success in this new territory.
 

Comments (4)

9to5Mac Noob (not verified) | October 30, 2009 - 7:32am

Even in the US, few people will consider a phone for $730 or more. But in China? We are talking about a very small percentage of the population that would buy an iPhone. I don't think that Apple's customer base will exceed 1% of the Chinese population in the long run unless Apple lowers the price dramatically. One percent of the Chinese population is stll something around 13 million people, though. So, the Chinese iPhone market share will be performing similar to any European country - 10 - 20 million people in each of those countries may eventual own an iPhone. The Apple's expansion to China is not going to be as dramatic as some think.

9to5Mac Noob (not verified) | October 30, 2009 - 8:17am

I think you need better understanding of the english language. That isn't "hitting a snag."

iphonerulez (not verified) | October 30, 2009 - 1:27pm

Once the Chinese citizens get with the program like the rest of the world, they'll love the iPhone providing they can afford it. After all, the iPhone is assembled in China and it's giving them jobs, so shouldn't they support it.

9to5Mac Noob (not verified) | November 12, 2009 - 10:23pm

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