iPhone Launches Today in China

[MacRumors]

The Associated Press reports on today's launch of the iPhone in China, noting several hurdles faced by the Apple as it attempts to tap into the world's largest market.

Among those hurdles is a lack of Wi-Fi functionality, a restriction that had been imposed by the Chinese government. The restriction was lifted earlier this year, but not until after the Chinese-specific iPhone lacking Wi-Fi had gone into production.

Unicom's iPhones lack WiFi because it was temporarily banned by Beijing, which was promoting a rival Chinese system, according to BDA. The ban was relaxed in May after manufacturing had begun.

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," Yi said.

The lack of Wi-Fi connectivity also puts the spotlight on the new Chinese iPhone's relatively high price, which may result in the new device competing directly against unlocked iPhone 3GS models with Wi-Fi that have been brought in from other countries. An estimated 1.5 million to 2 million such iPhones are already operating on partner carrier China Unicom's network, and new unlocked imports are currently selling on the street for 20% less than the Chinese model when purchased without a contract.

Apple Inc. and Unicom also could face competition from an unusual source: unlocked iPhones brought in from abroad that have WiFi.

There are already an estimated 1.5 million to 2 million such phones in China using China Mobile 3G service that allows Internet access and other features.

Unicom's prices range from 4,999 yuan ($730) to 6,999 yuan ($1,025) for the high-end, 32-gigabyte iPhone 3GS. That is 20 percent above the 5,700 yuan ($835) charged by merchants at Chinese street markets for a 3GS with WiFi.

Apple has so far refrained from offering public sales targets for the Chinese market. An early report claimed that China Unicom had committed to purchasing 5 million iPhones for sale on its network, although the rumor was quickly denied by a spokesman for the carrier.

Article Link: iPhone Launches Today in China

[savoirfaire]

Hopefully the enormous Chinese market will push AAPL to an all-time high!

[*LTD*]

And Chinese government control of the more "subversive" aspects of the iPhone in 5, 4, 3, 2, 1 . . .

[Chintan100]

Finally....

Apple is going to rock this quarter for sure...

I love

[Consultant]

Wow, china unicom failed at their pricing.

[mdntcallr]

i would have thought the pricing would be cheaper in China for Chinese consumers. ie a more stripped down iphone with no wifi = Cheaper.

hell they are made in china, less transport costs as well and no currency exchange as well.

[joemama]

What a terrible start to what could have been a fantastic launch.

First, there is no Wi-fi. Then the government allows it, which makes the iPhone already out of date, so people will hold off on buying one until the next version.

Second, there are iPhones on the street already that have WiFi and cost less.

People aren't stupid, no matter where they live.

I hope Apple does sell a bunch, but it doesn't look like they will.

[Eddyisgreat]

Originally Posted by joemama

First, there is no Wi-fi.

Yeah seriously; in this day and age? Hope China Unicom doesn't have extra low data caps for extra hungry data users. Jobs needs to use better persuasion techniques; though I understand the chinese can be a bit...difficult to work with a times.

[Full of Win]

Oh the irony. The country that makes the most 802.11 devices has such restrictive rules on their usage.

[Macula]

What if WiFi is re-enabled with a firmware update?

[spazzcat]

Originally Posted by Consultant

Wow, china unicom failed at their pricing.

I think this pricing is with out a contract? Guessing it is less if you sign one?

[Full of Win]

Originally Posted by Eddyisgreat

Yeah seriously; in this day and age? Hope China Unicom doesn't have extra low data caps for extra hungry data users. Jobs needs to use better persuasion techniques; though I understand the chinese can be a bit...difficult to work with a times.

You do know this is from the Government, since they see it as an outlet they cannot control.

[lazyrighteye]

Ouch. Now that's some unlucky timing.
Who would buy a non wifi version with wifi versions around the corner?
Again, ouch.

[FSMBP]

Originally Posted by Macula

What if WiFi is re-enabled with a firmware update?

I apologize if you're joking, if not - you're an idiot.

You can't re-enable HARDWARE that isn't there. Just like how my 2001 Toyota can't get "HD Radio" through a software update; you need a physical HD Radio for that.

[VenusianSky]

A Communist iPhone. Maybe they will become a collector's item. Unicom should market that.

[Eddyisgreat]

Originally Posted by Full of Win

You do know this is from the Government, since they see it as an outlet they cannot control.

I knew that much.

[ChazUK]

Good luck with the launch Apple and I hope the new Chinese owners enjoy the iPhone!

[spazzcat]

Originally Posted by Aadhil

There are always politer ways of pointing things out. Not everyone has an IQ as high as yours...

And I am sure someone could come out with an-add on that would have wifi in it.

[joelypolly]

The prices is probably to do with VAT in China. I believe it is around 17.5% for electronic goods or at least it was when I purchased my camera lens. There is also a Sales Tax(Receipt Tax) depending on the state you are in. In Shanghai it is around 3 to 4 % depending on the retailer and the type of receipt they provide.

So 20% increase doesn't seem so bad when you put that in perspective. Imported grey market iPhones don't need to pay VAT or Sales tax which is why they can be cheaper than the Chinese models.

[BJB Productions]

Originally Posted by joemama

What a terrible start to what could have been a fantastic launch.

First, there is no Wi-fi. Then the government allows it, which makes the iPhone already out of date, so people will hold off on buying one until the next version.

Second, there are iPhones on the street already that have WiFi and cost less.

People aren't stupid, no matter where they live.

I hope Apple does sell a bunch, but it doesn't look like they will.

Silly Chinese government..

[BillyBobBongo]

I'm not so sure it'll (the iPhone) do that well over in China....time will of course tell.

[cumanzor]

Originally Posted by *LTD*

And Chinese government control of the more "subversive" aspects of the iPhone in 5, 4, 3, 2, 1 . . .

AMERICA **** YEAH

[iOrlando]

這是一個偉大的日子。快樂生活

[Ericatomars]

The cell phones in China are like light years a head of iphone... And maybe Apple will see that people don't wanna be tied down by contracts with sucky service... If I have a great working iphone without a contract then why would I want to go to on a contract being tied down and no WiFi.. AND MORE MONEY?? Yeah.. No thank you...

[Rocketman]

I guess this clears up the Apple employees flying to China story.

Rocketman