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  • China Unicom Might Sling the iPhone


    China Mobile and Apple talks concerning the iPhone recently broke down after China Mobile wanted to control the sales of apps on the phones it sold instead of Apple in control like they currently are with the App Store.

    Their loss. Now China Unicom (125 million subscribers) has picked up where China Mobile (415 million subscribers) left off in negotiations with Apple. According to a Reuters report China Unicom Chairman Chang Xiaobing said "We are in talks with many handset suppliers, including Apple..."

    If the iPhone is to be sold by China Unicom analysts believe that it will be highly subsidized. Jimmy Cheong and Tim Storey of JP Morgan say that "iPhone is likely to be highly subsidised and China Unicom may give away large revenue share so earnings upside is possibly limited, in our view. We think this is a reason why China Mobile has refused to sign with Apple to date" because "iPhone copies (i.e. the Hi-Phone) are available without (users) having to sign long-term contracts."

    Will talks make it all the way through and turn into iPhone sales by China Unicom? It is anyone's guess but here at MMi we have seen a trend over the last couple of years: iPhone = Carrier success (at least in the terms of revenue and subscribers not network availability . . . but that's another topic all together . . .)

    [via appleinsider]
    This article was originally published in forum thread: China Unicom Might Sling the iPhone started by Cody Overcash View original post
    Comments 9 Comments
    1. D3ath's Avatar
      D3ath -
      First!
      I say that the chinese should have the iPhone also.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Here we go again..... I am sure they will come to an agreement... going to take a little while....
    1. greenleaf187's Avatar
      greenleaf187 -
      Well im not surprised. I wouldnt want to sell my products in China, no offense to the Chinease of course, but there are lots of imitators who would ruin the image of my company. I know for iPhone that is no problem, since their reputation proceeds them, but my product will suffer in that region (Over 1 billion comsumers). I still hope this deal goes through nobody should be deprived from the IPHONE!
    1. XenoSaber's Avatar
      XenoSaber -
      I don't agree, I don't think that the iPhone will do as well over in China as it did here. For one, you have a massive base using the clones right now. What they are used to is a relatively inexpensive, jailbroken device that just works. I think that once they realize that Apple seems to think that you don't really own your iPhone, you just paid a really big lease of sorts and that they can tell you what you can and can't do with it, they will drop it like a hot potato. Like the Chinese need any more oppression.

      "僕はアニメが好きです!!!"
      "一遍…死んで見る" ---閻魔あい, 地獄少女

      "Humans are greedy, therefore they are human, you do well to remember that."
      "Go ahead and shoot me if you want, but... I think you'll wish you'd saved your ammunition later."

      ---Armblast, GOTT Auditor and ES Member
    1. Maknificent's Avatar
      Maknificent -
      Quote Originally Posted by XenoSaber View Post
      I don't agree, I don't think that the iPhone will do as well over in China as it did here. For one, you have a massive base using the clones right now. What they are used to is a relatively inexpensive, jailbroken device that just works. I think that once they realize that Apple seems to think that you don't really own your iPhone, you just paid a really big lease of sorts and that they can tell you what you can and can't do with it, they will drop it like a hot potato. Like the Chinese need any more oppression.
      This is classic...
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by greenleaf187 View Post
      Well im not surprised. I wouldnt want to sell my products in China, no offense to the Chinease of course, but there are lots of imitators who would ruin the image of my company.
      These imitations will exist no matter what. NOT having the iPhone is China is actually worse, because then the only thing they have to fall back on is imports of the phone or the cheap knockoffs.

      Quote Originally Posted by XenoSaber View Post
      I don't agree, I don't think that the iPhone will do as well over in China as it did here. For one, you have a massive base using the clones right now. What they are used to is a relatively inexpensive, jailbroken device that just works. I think that once they realize that Apple seems to think that you don't really own your iPhone, you just paid a really big lease of sorts and that they can tell you what you can and can't do with it, they will drop it like a hot potato. Like the Chinese need any more oppression.
      While I disagree with what Apple is saying about the jailbreaking scene, they hardly state that you are leasing from them. The actions they are taking (well not sure if they are taking any action yet other than publicly stating what they believe) have been mainstream in the video game console industry almost since it started. They don't want pirates and security issues and they know of no other way to guarantee this without taking down the jailbreak. Does it suck? Yes... but what sucks more is the fact that there are pirates and hackers out there forcing companies such as Apple to make these decisions. That being said, the decisions are still wrong in my opinion.
    1. greenleaf187's Avatar
      greenleaf187 -
      Quote Originally Posted by sziklassy View Post
      These imitations will exist no matter what. NOT having the iPhone is China is actually worse, because then the only thing they have to fall back on is imports of the phone or the cheap knockoffs.
      Well actually, if you consider the marketing expenses in addition to the sale bumps, i can't imagine it succeeding in such a market. China Unicom are not obliged to stick to one phone. They offer many contracts and many handsets. If they depend on those who understands and appreciates the ingeniousness of a concept, then im sure they are going to face a huge pitfall.
    1. Melech518's Avatar
      Melech518 -
      They will never make a deal in china!
    1. paul100's Avatar
      paul100 -
      Well, if Apple & China Unicom strike a deal, then there is definitely going to be a huge sales of iPhones in the Chinese market. Because China is the hub for all South Asian countries to import & export unlocked latest iPhones (in the black market). I think this can be reduced if this deal is signed and all these can be sold through Mobile Service Providers which will be lawful and benefitial to both parties and the people.