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China's only WCDMA carrier is considering a major change in its iPhone sales strategy. If the scuttlebutt around the prominent Chinese carrier is accurate, China Unicom may soon move away...
08-17-2012, 11:58 AM #1
China Unicom Considering Major Change to iPhone Sales
China's only WCDMA carrier is considering a major change in its iPhone sales strategy. If the scuttlebutt around the prominent Chinese carrier is accurate, China Unicom may soon move away from contract sales of the popular smartphone.
In the fall of 2010, China Unicom introduced two-year contract-bundles of the iPhone 4. If you do the math, you will quickly discover that these first-wave contracts will begin to expire in a matter of weeks. When they do, China Unicom may not offer an opportunity to extend them.
Digitimes reported Friday that China Unicom "has not substantially profited from sales of iPhone 4 and has incurred a heavy financial burden from subsidies." As a result, it isn't clear if the carrier will continue to dump huge reserves of cash into such a protracted commitment.
Higher-priority goals for the Chinese carrier reportedly include expanding the network infrastructure already in place to better serve the world's largest mobile community. Naturally, this sort of development could deliver a significant blow to Apple's emerging Asian market aspirations.
08-17-2012, 01:54 PM #2
This is not the first time that these types of arguments have circulated around the tech blog. However, just as before, these articles are very flawed. Subsidies have been around for a very long time and iPhone subsidy's are not the only subsidy's the carriers have. They are nothing new. This story, just as the many story's on this same subject before it, all lack certain info.
These stories do not take into account the endless "fee's" placed upon the customer by the carrier. Not to mention, today it does not matter which carrier a customer decides to use because they all nickel and dime you to death. From overpriced data, to text messages. And now we hear that carriers may charge for FaceTime over a 3/4g connection.
Yes, I can imagine subsidy's across the board eat up company profits! However, buy the time a 2 year agreement has come to an end, the carrier has made their profit from its customers.
Think of it like this. A manufacture has to pay the power company for its electrify. They need to incur that cost to make a profit. Without power, they cant manufacture products. There is no difference here. The carrier has to have subsidy's with not only Apple, but with Samsung, Nokia, Sony, Etc. Its the cost of doing business as a carrier. This is because the carriers do not manufacture, they offer a different service.
I would bet we see these stories because someone is "Trying to make Apple look like the bad guy." The iPhone is in demand right now. Of coarse it will have a higher subsidy just as Im sure a Galaxy S3 will have a higher subsidy than a Lumina 900. Until someone writes a legit article, comparing at least several of the phone manufactures, and the cost put on carriers by these manufactures TOGETHER, the argument is biased.
Oh well. Lets just blame Apple
Last edited by mustard05; 08-17-2012 at 01:56 PM.
08-17-2012, 03:01 PM #3
I guess they're not making enough $$ per customer. Really, though, a company has to do what's best for profit - if they're not making as much profit on the iPhone then they should either dump it or re-negotiate with Apple. Both Apple and telecom companies need to benefit each other - but right now Apple is the one cashing in, most gratuitously in fact.
08-17-2012, 03:14 PM #4
Businesses are built for one reason..MAKE $$. I hope they are able to make this work.
08-17-2012, 04:16 PM #5
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