Apple iPhone Deal With China Unicom Imminent?

[MacRumors]

Fortune summarizes recent fast-moving developments in reports of Apple and China Unicom's negotiations to bring the iPhone to China. While an initial story out of China claimed that the two companies had reached a three-year deal, subsequent reports cited a China Unicom representative who stated that no agreement had been reached and that discussions were still ongoing.

First Shanghai Security News reported that Apple (AAPL) had reached a three-year deal with China Unicom to market the iPhone in the world's largest cellphone market (600 million-plus subscribers).

Then AFP and Reuters reported what China Unicom's spokesperson told them: that the two companies were still in negotiations and no agreement had been reached (something, by the way, any company dealing with Apple will say before Cupertino has had a chance to break the news itself).

Fortune then points to iPhonAsia.com[/i], which provides some details on the rumored agreement, along with a supposed late September launch date.

- The Apple and China Unicom deal will be a 3-year exclusive.*
- The iPhone will be customized for the China market (e.g. Chinese language and preloaded with "for China" apps).
- China Unicom will pay Apple 3,000 CNY ($439 USD) per unit.
- China Unicom will subsidize iPhone by pricing the iPhone below the 3,000 CNY paid to Apple. This would take the official iPhone price below the grey-market price for smuggled iPhones.
- China Unicom has promised to sell a minimum 1 million units per year with significantly higher sales targets.
- The iPhone for China will make use of Apple’s China App Store.

*There is no mention of the terms of exclusivity, such as whether this will be for all iPhones or 3G models only? (leaving the door open for an unlocked 2G model in 2010/11 for all carriers).

Recent reports have claimed that a China-specific version of the iPhone lacking Wi-Fi connectivity is already in production.

Article Link: Apple iPhone Deal With China Unicom Imminent?

 

[TheShinyMac]

why no wi-fi

 

[iCantwait]

no wifi is kinda crap.
But at least they get GPS unlike egypt

 

[JoJoCal19]

If this does in fact happen and Apple creates a new physical model without wifi then that kind of punches a hole in peoples arguments that Apple would not create another model with a CDMA radio in it.

 

[DELLsFan]

/depantsing all the geniuses here who guffawed at the "no wifi in China" prediction I made months ago.

Chinese app store! Hopefully the concessions Apple made to the Chinese government will be worth it. Time will tell.

 

[Full of Win]

They are going to have so much fun using their phones to watch Youtube and updating their Facebook pages …oh, wait.

 

[Electrolytic]

purely selfish but would rather it be "Apple iPhone Deal w/ T-Mobile USA Imminent"

 

[Pixellated]

It also has carrier branding on it: http://www.engadget.com/2009/07/28/china-unicom-finally-brings-iphone-to-worlds-most-populous-coun/

 

[iOrlando]

so an entirely new app store just for China....

and i am guessing U.S. based app developers wont be able to have their apps sold in China?

 

[Sayer]

So the "for China" apps must include Google services locked in to the "Big Brother" servers Google made for China then? No Tienemen Square search results?

And all data is routed through the cell carriers, which are really just subsidiaries of the Chinese government so your calls and data will be accessible incase you post to a blog that the Chicoms don't like. An iPhone sale is an iPhone sale, who cares about the silly government controls, right?

But hey they can get iFart!

 

[samh004]

It also has carrier branding on it

I've got to say, I doubt it.

Apple should complain that they're being treated unfairly, considering the amount of other phones available with wifi, but who do you complain to?

It's also hard to say anything bad about China without coming across as racist, but seriously, what a crock of...

Can't wait for other stock markets to start propping themselves up to screw China.

 

[Kila]

Umm....who gives a ****?
This isn't China.

 

[Apple Corps]

Umm....who gives a ****?
This isn't China.

650,000,000 Chinese cell phone subscribers probably care.

1,400,000,000 Chinese on the move towards increased quality of life may care.

Apple stockholders care.

Talk about a narrow, provincial perspective

 

[talkingfuture]

This could be a huge boost to the financials when it is released. Assuming it is at a price that is affordable in China.

 

[steviem]

Why did I read the title as 'Apple iPhone Deal With China Unicorn Imminent' and think they are gonna throw this in to sweeten the deal of the 3GS?

 

[stil]

Apple should complain that they're being treated unfairly, considering the amount of other phones available with wifi, but who do you complain to?

What other phones are you talking about? There's no Wifi on any legally bought phones in China.

 

[gretafour]

China Unicom shares are doing well with this news!

For some inane reason, The Chinese gov't does not allow wi-fi on any cell phone sold on the mainland. I think it's so they can charge people for the data (which is quite expensive by chinese standards). I wonder what the data usage cap will be.

 

[SFStateStudent]

Good for China and Apple (No WiFi?). 600 million subscribers.....

 

[imwoblin]

So assuming Apple ships iPhones for 1/6 of the potential cell phone market in China (100 million) x $439 = HUGE SALE... so huge that my TI calculator doesn't have enough space to calculate = E = $$$$$

 

[stil]

Umm....who gives a ****?
This isn't China.

It's China for me.

Everybody has a mobile phone here. Street cleaners, farmers, everybody. Smart phones have been common for years. There are more people on the internet in China than the US population. Apple products have been making in-roads here and a piece of the mobile phone market would greatly improve Apple's profile. If you have an iPhone it was probably put together in Shenzhen, China.

Perhaps you don't care but plenty of people do including me.

I can use Wifi because my iPhone is out of Hong Kong.

I can also use MMS on my China Unicom 3G plan.

 

[DELLsFan]

China Unicom shares are doing well with this news!

For some inane reason, The Chinese gov't does not allow wi-fi on any cell phone sold on the mainland. I think it's so they can charge people for the data (which is quite expensive by chinese standards) ...

No, I believe it's because a phone with no Wi-Fi is less likely to tempt Chinese citizens to offend the morals of the State. It's hard enough monitoring the "appropriate" internet usage and loyalty of the communist populace without adding mobile internet to the fray.

 

[samh004]

What other phones are you talking about? There's no Wifi on any legally bought phones in China.

While at the same time they're not exactly cracking down on illegal sales of phones with wifi in them. Can't imagine any expats living there will be particularly happy if they can't get out to purchase their phones.

I understand how the government works there, but it wont be long before tanks can't hold back the people. I eagerly wait for that day.

 

[Shiner]

I only have 1,000 shares of apple stock. How many does everyone else have? I am just concerned with apple products quality going downhill. They have been getting worse every year they grow.

 

[frankly]

If this does in fact happen and Apple creates a new physical model without wifi then that kind of punches a hole in peoples arguments that Apple would not create another model with a CDMA radio in it.

Do you actually think that removing Wi-Fi from the phone is equivalent to changing the radio frequency chip and updating the programing that goes along with that?

 

[Bjohnson33]

I only have 1,000 shares of apple stock. How many does everyone else have? I am just concerned with apple products quality going downhill. They have been getting worse every year they grow.

I'm not sure what you mean by this. How has their quality gotten worse every year?