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Apple Looking to Bypass Chinese Carriers by Selling Unlockable iPhones Through Retailers?

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Apr 12, 2001
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BusinessWeek reports on a note from Wedge Partners research analyst Matt Mathison, who believes that Apple is looking to make a deal with Chinese retailer Di Xing Tong to offer iPhones that could be unlocked for use on the network of China Mobile, the world's largest wireless carrier.
Despite ongoing talk about possible tie-up with the mother of all cellular carriers, China Mobile, equity research firm Wedge Partners believes Apple may have found a new way to sell iPhones to some of the carrier's half-a-billion subscribers. Wedge's managing principal, Matt Mathison, thinks Apple will ink a deal with a large cell-phone retailer called Di Xing Tong, which owns hundreds of storefronts in China. The chain is owned by Foxconn, the massive contract manufacturer that builds so many of Apple’s products.
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Following announcement of a deal with China Unicom last week that has been confirmed to be non-exclusive, reports have emerged that Apple is continuing to negotiate with China Mobile despite little success in the multi-year talks so far.

BusinessWeek notes, however, that China Mobile has just announced its own smart phone operating system, Ophone, which may lessen the company's incentive to strike a deal with Apple for the iPhone and make sales of potentially unlockable iPhones through third-party brick-and-mortar retailers more likely for Apple. Mathison is careful to note that, while Apple likely would not directly offer unlocked iPhones, it might be willing to turn a blind eye to the practice in order to reach more customers.

Mathison claims that Apple has concerns about partner China Unicom's marketing prowess and network quality, factors which may push Apple to vigorously continue to pursue distribution on other carriers' networks there. Mathison sees such a deal with Di Xing Tong as possibly doubling the number of iPhones Apple could sell in China in 2010.

Article Link: Apple Looking to Bypass Chinese Carriers by Selling Unlockable iPhones Through Retailers?
 
Article Link
https://www.macrumors.com/2009/09/02/apple-looking-to-bypass-chinese-carriers-by-selling-unlockable-iphones-through-retailers/
They should do the same in other countries, I would like to just by an iPhone over the counter and choose whatever carrier I wish.
 
Unlocked iPhones

Why would Apple "likely not directly offer unlocked iPhones" and "might be willing to turn a blind eye ..."?

In Italy Apple already sells full-price official unlocked iPhone 3Gs and 3GS' through the italian Apple Store.
 
Now that Apple has dealt with the Carriers and exclusitivity, I see a MAJOR problem with them selling at Retail.
I believe that they MUST deal with the Carriers.
Reason..... if the Carrier doesn't want you to use the features, they just monitor the type of phone that you're using.
Example, AT&T didn't want the iPhone users on MMS yet. They just detect the iPhone as the phone you're using, and disable the MMS for iPhones.
This tells me that a Carrier could disable MMS, Tethering, SMS, Web, Email, ALL Data, or the phone from functioning in ANY way on their network.
So, if Apple can't come to an agreement with the Carrier, and a phone is Unlocked, they could still prevent you from utilizing their network if you made them upset!
Just my take on the situation.
 
emulator said:
indeed. i think right now only Italians have the privilege to get iPhone as prepaid. The price is horrible though.
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they sell the iPhone prepaid in the UK even though it's still locked to O2. Apple also sell the iPhone unlocked through the Apple Store online in both Hong Kong and Australia, so it really isn't that rare for Apple to sell, even directly themselves, unlocked iPhones.
 
unlocked iPhones in HK Apple Store

Apple already does this with the Hong Kong Apple online Store. They are very very pricey compared to other popular phones here.

Reduce the price and extend the availability and I think the sales numbers would be much better.
 
Unlocked iPhones prices

avvpiras said:
Why would Apple "likely not directly offer unlocked iPhones" and "might be willing to turn a blind eye ..."?

In Italy Apple already sells full-price official unlocked iPhone 3Gs and 3GS' through the italian Apple Store.
Click to expand...

Of course, as they are not subsidized by a carrier, the official unlocked iPhones that Apple sells in Italy are quite expensive:
iPhone 3G 8GB: Euro 499.00
iPhone 3GS 16GB: Euro 599.00
iPhone 3GS 32GB: Euro 699.00
Prices include VAT 20% and shipping.

Apple assures that they work with a SIM of any carrier (must be at least a 128K SIM).
 
emulator said:
indeed. i think right now only Italians have the privilege to get iPhone as prepaid. The price is horrible though.
Click to expand...

The prices are not so horrible, if you consider:

a) you are not linked to one carrier, you can swap SIMs as you like;

b) of course, MMS and tethering;

c) the big savings you can make during a even a single, short, travel abroad, buying a local prepaid SIM instead of roaming all day.
 
voodoofish said:
they sell the iPhone prepaid in the UK even though it's still locked to O2. Apple also sell the iPhone unlocked through the Apple Store online in both Hong Kong and Australia, so it really isn't that rare for Apple to sell, even directly themselves, unlocked iPhones.
Click to expand...

I agree.

The only reason why Apple is going through a retailer in China is that the eCommerce segment of China is not yet mature. Look at the Apple Store (China) for example. In every other online Apple Store you can order directly and pay directly but the China store only shows you the catalog and then you have to call to order, or visit the Retail store or a dealer.
 
avvpiras said:
The prices are not so horrible, if you consider:

a) you are not linked to one carrier, you can swap SIMs as you like;

b) of course, MMS and tethering;

c) the big savings you can make during a even a single, short, travel abroad, buying a local prepaid SIM instead of roaming all day.
Click to expand...

I agree and I don't understand why Americans consider it expensive.

I'd gladly pay 699€ to get an unlocked iPhone.

I could "pay-as-I-go" and get unlimited data for about 9€ / month and inexpensive voice and SMS service. It just seems so much smarter than a 2-year contract costing so much more.

Actually, I'm in Italy throughout October, so what would my options be for buying one there and using it with a EU-wide carrier like 3?
 
Of course, as they are not subsidized by a carrier, the official unlocked iPhones that Apple sells in Italy are quite expensive:
iPhone 3G 8GB: Euro 499.00
iPhone 3GS 16GB: Euro 599.00
iPhone 3GS 32GB: Euro 699.00
Prices include VAT 20% and shipping.
Click to expand...

Those prices aren't bad at all - O2's fairly ridiculous iPhone pay-as-you-go works out at
16GB - 531 Euros
32GB - 614 Euros
For that, you get free internet for a year, but you are locked to O2's network (ie can't use a different sim when you travel, or choose a SIM only tarrif in the UK, which tend to be good value for money)
 
"Mathison claims that Apple has concerns about partner China Unicom's marketing prowess and network quality, factors which may push Apple to vigorously continue to pursue distribution on other carriers' networks there. Mathison sees such a deal with Di Xing Tong as possibly doubling the number of iPhones Apple could sell in China in 2010."

network quality - and they selected ATT for the US.
 
acidfast7 said:
I agree and I don't understand why Americans consider it expensive.
Click to expand...

Erm... the person who called it expensive is from Italy. I.E. they're one of yours. ;)

For Americans to buy unlocked phones from abroad, the issue is less the cost at which they're sold abroad, but that, given they are not available here officially at any price, unless we happen to be going to Europe or China when we need a new phone, the fact that we also have to pay a middle-man and international shipping costs... With the overall size of the markets in Europe that sell unlocked iPhones, the end cost to one of us, were we to want to do such a thing, is a lot.

If the Chinese market does get a large number of unlocked phones, then perhaps this will bring more of an economy of scale to the grey market. :D
 
azentropy said:
Right. Start doing the same in the US and I'd be interested.
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I can't promise anything, but yes I will definitely think about getting the next iPhone (after 3GS) if it's not extremely restricted to the carrier (and Apple, for that matter, with that iTunes activation crap).
 
valanchan said:
Reduce the price and extend the availability and I think the sales numbers would be much better.
Click to expand...

So you're saying that increasing supply and lowering price would increase quantity demanded? Interesting. I wonder why no one has thought of that before?
 
acidfast7 said:
I could "pay-as-I-go" and get unlimited data for about 9€ / month and inexpensive voice and SMS service. It just seems so much smarter than a 2-year contract costing so much more.
Click to expand...

Smarter for us, yes, but not for the ridiculous profits of cell phone companies.:mad:

I'll only get an iPhone when I don't have to be tied to AT&T in the US and I can get a reasonable plan like you mentioned in your post.
 
Has Apple perhaps learned the bitter lesson that exclusive agreements really suck? Imagine how many phones they could sell if the iPhone could be unlocked and used on carriers like T-Mobile.

Just asking, not being an expert in telecommunications, but is there a way to insert a SIMM and be able to connect to the Verizon network? I know that they don't use SIMM's like AT&T, etc, but is there the possibility of using the SIMM slot to 'adapt' a phone to use the Verizon network or is their flavor of 3g that much different that it would requite hardware changes? Could that change happen through the SIMM slot?
 
acidfast7 said:
Actually, I'm in Italy throughout October, so what would my options be for buying one there and using it with a EU-wide carrier like 3?
Click to expand...

You can buy one at the (only two) italian retail Apple Stores:

Apple Store Roma Est
c/o Centro Commerciale RomaEst
Via Collatina, 858
00155 Roma Lunghezza
tel. +39 06 2245300

or

Apple Store Carosello
Centro Commerciale Carosello
Carugate
20061 Milano
(not yet opened, grand opening on September 5, 2009, no telephone number yet in the web page)

There I think they will let you try an iPhone with your swedish carrier SIM, before buying.

Or, if you prefer to buy from the online Apple Store, I think you can go in any italian post office (Poste Italiane) to open a "PostePay" account, pouring in just the amount of the price of the iPhone plus two or three Euros, giving your italian address, and asking for the PostePay VISA pre-paid credit card, which is accepted for opening an account in the italian online Apple Store.
As long as you have an italian credit credit card and a delivery address in Italy, I think you can open a valid account in the italian online Apple Store
Anyway, I advise you to ask them in advance (before opening the PostePay account). The phone number of the italian online AppleStore is 800.554.533. Perhaps, as long as the delivery address is in Italy, they will allow you to place directy a telephone order with you swedish credit card.
 
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