China's mysterious iPhone plans – update
[UPDATE: Dan Butterfield of iPhonAsia.com has slogged through the Mandarin in the press release and clarified some issues. See below.]
After a series of leaks last week to the Chinese business press — including Xinhua, the Communist government's official news agency — China Unicom (CHU) on Monday finally released some hard news about when and for how much it plans to begin selling Apple's (AAPL) iPhone in China
But not much news.
"When" is in October — which could be as early as Thursday or as late as 33 days from now.
"How much" is something of a mystery. The official word is around 5,000 yuan ($732.20) — considerably higher than the prices that were being tossed around last week (those ranged from 1,999 to 2,999 yuan).
But the carrier did not specify how much iPhone (8 GB? 16 GB? 32 GB?) 5,000 yuan might buy.
And it offered some details — but not quite enough — about the service plans that will accompany those iPhones and reduce their initial sticker price.
There will be eight plans in all, ranging in price from 126 yuan ($18.50) to 886 ($130) yuan per month. They will include 450MB to 4GB of mobile data access, 120 to 880 SMS messages, 15 to 95 MMS messages, and between 320 to 3,000 minutes of talk time. A rate card would have been helpful.
It's not clear what China Unicom hopes to gain by this mix of vagueness and specificity. Perhaps it's to keep its competitors — China Mobile (CHL) and China Telecom (CHA) — off balance. Perhaps it's to encourage customers to choose longer-term service plans when the final — and presumably heavily subsidized — iPhone prices are revealed.
Or perhaps they've learned a trick or two from Steve Jobs, a master of the art of managing the flow of information in order to keep his company in the headlines.
UPDATE: According to iPhonAsia.com's Dan Butterfield, who has been following the story closely and can read Mandarin:
- The 5,000 yuan ($732) price is for a "no contract" iPhone (unclear whether that's for 16 GB or 32 GB)
- Subsidies for customers who go "on contract" range from 893 yuan to 4,253 ($130.56 to $621.83).
- There is even a "free" 8GB iPhone 3G plan for customers who sign up for a two-year contract with the maximum messages, minutes and data plan.
- He describes 10 different service plans, ranging from the 66 yuan ($9.67) ultra-cheap student package to a high-end package that costs 886 yuan ($129.54) per month.
See here for Butterfield's complete report.
@jpy – aren't you the clueless one… Motorola used to have significant market share in China (over 40%), and 10 years ago it was the single largest foreign investor in China. They have also had a significant R&D operation there. Their problem is structural, that is, mismanagement, bad product design, missed market opportunities, etc. etc. etc. Further you're ridiculous rant about the iPhone being "kept out" is equally absurd – Apple has simply not been able to negotiate a deal they were happy with up until now. Further, China did not have a 3G network until part way into this year which made launching the iPhone sooner impractical.
@jpy, Motorola should be happy with their 8% market share. Ask yourself: what did Motorola do in the past year makes you want to buy their phone?
For China market, Nokia has over 35% market share, Samsung is no. 2 at around 13%(?). Motorola now dropped to no. 3. I don't see any reason for it to out-sell Samsung any time soon.
@Joe, of course the iPhone works in China. There's a million grey market ones there already. I brought my iPhone to China and it works over EDGE just fine. I only made one call, but I had the international data plan, and that worked amazingly well, since China is well covered by EDGE. Let's see how quickly they roll out 3G.
I agree with the previous post by jpy. Why would an American defend China's trade practices? I think the way they devalue their money should be enough for us to say enough is enough. We defend to our last breathe our favorite sports teams but come to Chinas defense on things like this? sad.
FreeRange, Ok, how much market share does Motorola have in China? They're an also-ran in the Chinese market with close to none – just under 8% to be exact. How long's the Iphone been on the market and how long does it take for foreign manufacturer's to get their products into the American market? Apple's inability to get it's product to be sold in China is a ploy. They keep foreign products out while they allow time for their domestic producers to copy the original or it's functionality.
I think the real ignorance here is that of self-loathing Americans that turn a blind eye to the facts of our foreign trade and deficits. Both are unsustainable. If you have kids, you should be worried. They very well could end up selling Chinese goods at Wal Mart. We just can't keep shedding quality jobs and depending on the service sector to make up for them.
hey Tim, Phoenix, AZ
Maybe if the USA and 7 other countries didnt for China to open up its borders and trade/exploit the country… it might still be in its shell today
I don't understand how long this s gonna continue if we continue doing this there wont be any industry here it will be only consumer and no producer the government should promote made in USA NOT made in china every most of the countries are flooded with chiness crap one day we will be totally dependent upon them and china is not trust worthy all the jobs will be exported to CHina.
@Tim – what the heck are you talking about? Try to stay on topic if you're going to post another of your moronic rants.
@Joe – yes, the US iphone works in China but you will want to get it unlocked unless you want to pay a fortune to AT&T. It costs about $20 USD to get it unlocked there.
@iphoneulez – That price is probably in the same unsubsidized price range that Apple is getting around the world. An unsubsidized (unlocked) iphone sold on Apple's online store in Hong Kong is just over $800 USD (with wifi enabled). Your problem is that all you ever see are subsidized prices for phones which are "false" prices – the carriers are overcharging you each month for you to get the lower prices, which undermines the perceived value of mobile devices. How much is a cell phone? "Free with a two year contract". The carriers are ruining the industry! Why not get 6 months of free service when you buy a phone at full price? After all the carriers are the ones offering the commodity service versus an added value iPhone.
@jpoey – another ignorant rant from someone who doesn't know what they are talking about – Motorola sells phones in China and soon Apple will.
Another example of China's unfair trading practices. They do it every time and we let them. Keep filling their coffers to buy more of our debt. I hope the next generation doesn't mind living in huts and walking around in sandals because all our wealth has shifted and we gave it to them by exporting our jobs and really wimpy trade practices.
Bob in Atlanta. Everything's made in China. Everyone know that. It's an American Company that's being kept out. Why, genius?… the profits come here an not to Chinese companies. it's our technology and not theirs. Thanks for your completely pointless reply… genius.
anybody know if an iphone from US would work in China or not once they roll out the Chinese version?
So with production of iphones going up does that mean the price here will drop. Economies of scale and all that…
wow! $732! I checked and it's for the older 3G model. Buried in there is the fact Unicom will also offer Samsung's Android for less. That phone has hardware comparable to the 3GS, better than this offering.
Frank – China does in fact have a Communist government. I don't think calling them what they are is humiliating.
Why CNN always say "the Communist government" when you refer to China? Have you guys been to China and have your own look there?
It seems you guys can't rest until finding a humiliating word everytime.
And these are the Wifi-less crippled iPhones they will be selling? Or did Apple not have to remove the Wifi to be able to sell them in China?
The Google translation of the press release makes it sound like this is a limited trial for business and select others available on October 1 and that the general availability will be at the end of the month.
Damn! $732! That is expensive and it sure doesn't seem priced to sell. That price must be for the 32GB 3GS model.
ex ped: And quite possibly unsubsidized.
How is inscrutable polite or professional in this context? Seems like using old 40's pulp cliches to describe business dealings is… bull
A ballooning trade deficit with China. American market flooded with Chinese products. Undervalued Yuan. Thousands of jobs moving from the US to China.
We can't sell our phones in the Chinese market… Priceless!
No wonder why China block this page in the country. Too much criticism for them.
Fake IPhones exist now in the black market and they are selling well. Much cheeper that $732.