China Unicom announced yesterday that it has sold 100,000 iPhones, since its launch in China on October 30th. This is better than what was previously reported as just 5000 pieces sold in the first 1 week. In comparison, the Korean carrier KT Corporation has reported 60,000- 65,000 preorders in the first week. With the worlds biggest mobile market in its hands, China Unicom has done 100000 pieces in a month, this certainly isn’t what Apple would have liked. China Unicom has 144 million subscribers in China and given the iPhone hype and exclusivity it enjoys, the sales should have been better. So what affects the 3GS sales in China?
Apparently the lack of WiFi, a strong gray market in China and the high prices are to be blamed for the poor sales. At this point, Apple might be strongly negotiating a tieup with China Mobile aswell. The 32GB 3GS sells for 6,999 yuan (US$1,023) without a contract by China Unicom compared to $800 in Hong Kong for a factory unlocked version. This alone can explain the booming gray market for 3GS in China. I have come across several people even in India ordering the 3GS from Hong Kong (factory unlocked) given the official absence of Apple iPhone in India.