November 18, 2009

iPhone to take over China

High price of iPhone is no boundary to its success in China

China Unicom chairman Chang Xiaobing expects the iPhone to become China's best-selling smartphone.

"We're very confident about the market position of the iPhone," Chang said.

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There has been some concern that the iPhone would not take off in China due to the price. Unicom sold fewer iPhones than analysts anticipated in its debut week after offering the 32GB iPhone 3GS for 7,999 yuan (£698.45), compared to £538.30 for a Pay & Go model in the UK.

The price has been compared to the average yearly wage of a Chinese citizen.

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IDC analyst Aloysius Choong told Bloomberg: "In some markets where vendors get their marketing right, the iPhone is already the best-selling smart phone. Unicom must lower its prices if it wants to access the mass market for the iPhone."

Chinese consumers bought 11 million smart phones last year, a total that may triple by 2013, according to IDC's Choong.

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