Chinese iPhones to start at $300, $18.45/mos. – update
[UPDATE: On Sept. 28, China Unicom announced an iPhone price point more than twice as high as the one in this press report. See here.]
iPhones in China will be relatively expensive, but monthly charges will be among the lowest in the world.
So says the Xinhua News Agency, the official press service of the Chinese Communist government, quoting an unnamed "insider" at China Unicom (CHU).
According the Xinhua report published early Friday, China's No. 2 carrier will roll out the iPhone shortly after the Oct. 1-8 National Day holiday in four models: 3G 8GB, 3G 16GB, 3GS 16GB, and 3GS 32GB.
The entry-level version, the 8GB iPhone 3G, will cost 2,075 yuan ($303) according to this report — more than three times its U.S. retail price ($99).
But the iPhones in China will be bundled with two-year service packages that are considerably cheaper than AT&T's (T). According to Xinhua, the lowest-price service package will cost 126 yuan per month, about $18.45. (AT&T charges its U.S. iPhone customers a minimum of $39.99/mos. for voice service plus a mandatory $30/mos. for data.)
Total cost for China Unicom customers over two years: $746. Total cost for AT&T customers: $1,779.
These prices are slightly different than those quoted by China Business Times earlier this week. According to that report, China Unicom had set an "internal launch date" of Oct. 15 for two models: an 8 GB iPhone 3G selling for 1,999 yuan ($293) and a 16 GB iPhone 3G for 2,999 yuan ($439). Both models were said to be offered with 2 year contracts starting at 186 yuan ($27) a month.
China Unicom announced late last month that it had struck a deal with Apple (AAPL) to carry the iPhone in China, beating out giant China Mobile (CHL). China Unicom has 140 million subscribers; China Mobile has nearly three times that many.
The N900 sells for $580 in the U.S. and almost nobody will be buying them anywhere. The Chinese might have to sell their organs to buy one. I'm not even sure the N900 is certified for use in China and they're definitely not localized for China. Nokia built a pretty nice device in the N900, but it just won't sell in any significant quantities same as the N97.
@Savita
Not even considering the PPP u involved. $303 is a pretty cheap phone in China. Most college students have phones more expensive than that, and trust me, they change almost every year.
So NO, its not only for the wealthy elites in China.
2008 World Bank purchasing power parity (PPP) per capita: USA=46,716, China=5,962, so, which one is really cheaper?
Interesting info, Philip, but you're making the same lazy mistake that most reporters make about international currency differences and cost-of-living indicators.
Comparing the low-end iPhone 3G-8GB cost in the US of $99 (actually AT&T dropped it to $49 now), to $303 in China is nonsensical.
People in China don't earn dollars, they earn Yuan/Renmibi. So it's not $303, it's as if they're spending $2,075 DOLLARS. The avg. annual income in Beijing — which are the HIGHEST in China — is approx. 40K Yuan. While that equates to about $5,800/year…it's not…purchasing power parity will vary between 40K and 20K DOLLARS.
So, net-net, buying an iPhone in China will be for quite wealthy elites that work in investment banks or are engineers or doctors or other highly-educated jobs in the big cities. If the average income in Beijing is 3,300 Yuan, than think of the cheapest (old-gen) iPhone 3G being 2/3 of your monthly income…not cheap.
I hope you can not oversimplify on comparing income and prices in the future. It's simply misleading. If I can google this in 10 minutes, FORTUNE should be able to, as well, before publishing this nonsense.
ex ped: Very interesting. Thanks. But for the record, AT&T sells refurbished iPhones for $49, not new ones.
Very Cool …. low cost and then the Chinese will unlock it too. So why we, in US are agreeing to pay for such a high cost … and still keep on buying iPhone.
Nokia N900 will be cheaper and beat the heck out of iphone in China, along with its other touchscreen models.
This is a great opportunity for the millions of Chinese who don't have internet at home to get connected. As well, it's cheaper and more convenient than frequent trips to internet cafes as well.
I honnestly would have preferred this type of deal for myself.
My plan becomes more expensive than that after 7 or 8 months.
Will there be government crackdowns if the people gather to protest too many dropped calls? Oh, yeah … it's not AT&T …
I purchased China Unicom phone deal similar to iphone deal 5 years ago. They push it for the executive clients; but average white collar workers can easily pay 5000YMB for a phone once a year today. My sister-in-law, who works for Bank of China as new account clerk, buys a new phone for 5000 YMB every year. She is 25 had been working for 6 year with a high school degree.