So, if Apple can use manufacturing plants in China to produce most of its products today, generating huge margins, the company is struggling to give the iPhone the success encountered in the rest of the world. According to the latest news, China Unicom only sold 5 units via its website within the first two weeks following the introduction of the iPhone in China.
However, one should not look those data with the same context as in USA or Europe. HEreafter is a comment sent by Laurent from China:
In china, mobile phones are not subsidized by carriers, and customers in fact pay their handheld with a 12, 24 or 36 months credit. The price of the iPhone is similar to the price of the mobile phones of its class, around 300 to 400 €, however, in Chinese did not wait for China Unicom to start using the iPhone on mobile phone networks.
The iPhone is sold in almost all IT shops. If you go in Shanghai, Beijing, etc... in Clubs, bars or restaurant you will see iPhones everywhere.
China might be the second largest market after USA for the iPhone, however, distribution channel is simply different. Only a small percentage of mobile phones are sold in carrier's shops, as they are usually more expensive than in IT shops. Why would you go to China Unicom to buy an iPhone at a higher ^rice without the WiFi, while you can buy it for less while enjoying WiFi in the shop next door?
The WiFi was disabled by Apple following request from the chinese authorities to better control the information and traffic going through mobile and wireless networks. Of course, most of those iPhone are coming from the grey market, and Apple will have to deal with it and accept it. It could become a true issue if it turns out that some iPhone units are coming directly production lines, tagged as "fell from the truck" so potentially never registered in Apple records. Of course, with 1.3 billions inhabitant, one can adapt a bit its distribution channels.
