Photo: Chinese queue up for iPhones
Despite high prices and lack of Wi-Fi, hundreds line up in Beijing to buy Apple's smartphone
iPhone buyers in Beijing. Photo: it.chinanews.com.cn
Nobody camped out overnight and the lines didn't stretch for whole city blocks, but an hour before the iPhone was set to make its official debut in China, reporters in Beijing counted nearly 300 customers queued up to buy it, according to ChinaNews.com.
The first sale was scheduled to be made at 6:30 p.m. Friday Beijing time following an elaborate launch ceremony at the "The Place," China Unicom's flagship store. Apple vice president Greg Joswiak spoke at the event, calling it "an extraordinary day."
The line at Apple's all-glass store in the Village at Sanlitun retail development was smaller, but at one point grew to at least 150 customers long, according to a late update on MobileCrunch. Customers at the Sanlitun store told reporters they hoped to get better service by buying directly from Apple.
Although China is the world's largest cellphone market with more than 700 million subscribers, Western press reports have suggested that China Unicom (CHU) might have trouble attracting buyers under the terms of the deal it struck with Apple (AAPL). Due to restrictions imposed by the Chinese government, the iPhones being sold Friday won't have a Wi-Fi receiver.
They also cost from 4,999 yuan ($730) to 6,999 yuan ($1,025) for a 32 gig iPhone 3GS without a service plan. That is 20% more than the 5,700 yuan ($835) street merchants are changing for an unlocked gray-market 32 gig iPhone 3GS with Wi-Fi. China Unicom's iPhones are much cheaper — in some cases, free — when purchased with a long-term service contract. Â
Reporters crowd China Unicom chairman Chang Xiaobing. Photo: ccidnet.com
Earlier this week, iPhonAsia's Dan Butterfield reported that China Unicom is offering an amnesty program to entice the estimated 1.5 to 2 million gray-market iPhones already in China to sign up for its services. Under the "upgrade to 3G" program, owners of older iPhones can sign a contract and pop in a Unicom 3G sim card to take advantage of the carrier's WCDMA speeds and a variety of new 3G services
At the ceremony Friday, China Unicom officials announced that they now have more than 1 million iPhone 3G subscribers.
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"No wonder Nokia stock is up." Have you checked Yahoo Finance lately, or any stock market site for that matter?? Nokia is trading at a 1/4 of its 5 year high while Apple just set a new 5 year high a little over a week ago. Some honesty would be in order Mr. Iknowwhatimtalkingabout from Finland. PS, how do you think these grey market iphones were bought in the first place? Apple is still making bank off these phones too Mr. IknowhowmanyiphonesweresoldinIndia
"Chinese queue up for iPhones". Come on, the sales start in China was a flop of epic proportions aa it was in India and Russia. A few dozen max iPhones sold in Beijing over the weekend? Ten thousand iPhones sold in India this whole year? No wonder Nokia stock is up.
Some honesty would be in order, Fortune. Forget your normal patriotism and parochialism.
Isn’t it funny how china makes these phones but the last one to receive them? Sounds like what my parents told my of russian communist growing up, the person that makes the product is the last one to receive it.
What? Chinese are buying iPhone from apple???Cant they just copy it (like everything else) and sell it for $32 without service contract?
… I think there should be a congressional inquiry into the ethics of helping the ChiCom government to supress the god given right to wi-fi!
Since the iPhone prices are about as high in China as they are in other countries (¥4999 are about €499 after all, which is the price of entry in Europe for an unsubsidized iPhone 3G) I do have to wonder where those grey market iPhones are coming from if they can be cheaper than anything that's sold in official channels around the world. Most likely you can forget about any kind of warranty and possibly you might even be in possession of stolen goods.
Just curious, but are the people who assemble the iPhones in the Chinese factories get paid enough to afford these devices (after paying for their room and board and … ) ? Wonder if Steve Jobs has ever heard of Henry Ford…
Wait, he must have, the workers ARE being paid only $5 a day ! (sarcasm not backed up with evidence)
Free Range,
Perhaps the AP got it wrong…
Unicom's iPhones lack WiFi because it was temporarily banned by Beijing, which was promoting a rival Chinese system, according to BDA. The ban was relaxed in May after manufacturing had begun.
A Unicom spokesman, Yi Difei, said the company hopes to have WiFi in the next batch of phones.
"We are talking with Apple and expect the problem to be solved by the end of this year," Yi said.
http://www.google.com/hostednews/ap/article/ALeqM5gLahWr8T0f1sDPIXmMEV4yoR5Z-AD9BL82BO0
To the poster that seems to think Apple is taking advantage of the Chinese – WRONG – its China Unicom that sets the pricing. They are also setting the price high because they want to force people to sign up with a contract since the phone is not locked and the overwhelming number of Chinese do not want to sign contracts for mobile service, so Unicom is simply protecting their hardware sales.
To the poster that said the WiFi ban has been lifted – I live in China and have not heard that – what I do know is that manufacturers can include the international standard for WiFi in their phones, but they must also have the Chinese homegrown standard (or the Chinese standard alone) too which would require two radios, something Apple wasn't willing or able to do in this first iteration.
Apples biggest challenge in China is that there has been no Chinese version of the iTunes store which is a key driver of the phone. Also, the overwhelming majority of Chinese will NOT use a credit card online so Apple needs to find another business model, perhaps billing directly through China Unicom for iTunes sales.
The Chinese government has since lifted the ban on WiFi, and China Unicom will be selling iPhone's with WiFi by the end of the year.
Just ask yourself why so many American's bought an iPhone that wasn't even 3g?
Agree with Frank. Why would anyone buy a non-wifi iPhone? This move makes the black market iPhones seem much, much more desirable.
And BTW, does Apple sell the iPod Touch in China? Has the wifi been disabled on that too?
I hear the Chinese are already downloading top-selling Apps like FlashCardz, iSoundz and Madlipz. The App Store market will grow substantially with this new expansion.
"That is 20% more than the 5,700 yuan ($835) street merchants are changing for an unlocked gray-market 32 gig iPhone 3GS with Wi-Fi."
Why wouldn't you buy an unlocked phone?
Being regular traveller to china, I expected people will queue up for iPhone.
Money has been never an issue for young Chinese, it is prestige to have iPhone.
Durin my trip to china in march 09 I carried my iPhone, these young chinese were excited to see it, to my surprize after 2 days they would come and show me iPhone they bought loaded with many paid applications which I didn't have even.
Wait you will see how iPhone viral impact unfolds for Apple iPhone as hardware and number of application downloads.
I am sure as china sales numbers comes out Apple share will be $300.
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Even uconn students should know that china is a master at press manipulation. The iPhone will continue to dominate the phone market for awhile.