While Apple's iPhone 3G S goes on sale [1] today in eight international markets, the world's largest wireless subscriber market, China, is not one of them. That could soon change: According to a research note published Thursday by Bank of America/Merrill Lynch analyst Cynthia Meng, Apple and operator China Unicom have "most likely reached a deal for an exclusive two-plus year agreement" that will result in the iPhone making its Chinese retail debut sometime in the fourth quarter of 2009. Crediting "industry checks" with the insider information, Meng adds that details on pricing or subsidies remain unknown, but contends that based on conversations with retailers and vendors, the current suggested U.S. retail prices of $99, $199 and $299 are "affordable for [a] majority of high-end subscribers."
Last week, IDG News Service reported [2] a WCDMA-based Apple handset has appeared on the approved product list published on the Chinese State Wireless Inspection Center government-managed industry arbiter's website--the device, apparently an iPhone, was cleared last month to use its assigned frequency range for five years, the center notes. China Unicom operates a WCDMA network. In related news, the Apple website is advertising a Beijing-based job posting to supervise "iPhone training" across Asia--the position's duties include designing training for carrier partners that sell the iPhone.
Apple has said it hopes to begin selling the iPhone in China in the next year. Negotiations between the computing giant and China Mobile reportedly broke down [3] after the two firms reached a stalemate over the sale and distribution of mobile applications. Citing a source with the China Mobile Research Institute, Interfax reported in February 2009 that China Mobile and Apple spent about 18 months hashing out an agreement to introduce the iPhone to Chinese consumers--during the first of three rounds of negotiations, Apple demanded between 20 percent and 30 percent of the operator's revenues from iPhone users, a stipulation rejected by China Mobile. After the companies returned to the bargaining table, Apple offered to sell iPhones to China Mobile at $600 per unit while stipulating that the carrier subsidize any iPhone service bundles offered to users--again, talks broke down.
For more on the Apple/China Unicom speculation:
- read this Barron's article [4]
Links:
[1] http://www.fiercemobilecontent.com/story/iphone-3g-s-weekend-sales-forecast-top-500-000/2009-06-18
[2] http://www.fiercemobilecontent.com/story/apple-inching-closer-chinese-iphone-deal/2009-06-12?utm_medium=rss&utm_source=rss&cmp-id=OTC-RSS-FMC0
[3] http://www.fiercedeveloper.com/story/chinese-iphone-talks-ended-over-app-control/2009-02-09
[4] http://blogs.barrons.com/techtraderdaily/2009/06/19/china-unicom-reportedly-to-get-apple-iphone-in-q4/