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Rumor: China Unicom Clearing Out Wi-Fi-less iPhones

China Business News, 7/26/10

A source within China Unicom (NYSE: CHU; 0762.HK; 600050.SH) told China Business News yesterday that the operator sent an order in mid-July to all regional subsidiaries to clear stocks of non-Wi-Fi-enabled iPhones by the end of the month, in order to ensure a smooth launch for the iPhone 4. Regional subsidiaries can lower 32 GB iPhone pre-order contract rates for enterprises from RMB 6,999 to RMB 5,888.

A mid-level manager at an international mobile phone manufacturer who was familiar with China Unicom's plans said yesterday that the operator had signed an agreement with Apple last October to sell 2 mln iPhones within a one-year period, but that as of late June, the operator had sold approximately 700,000 units, with sales of about 100,000 units per month in April, May, and June. As the Wi-Fi-less iPhone units were manufactured specifically for the China market, the responsibility for moving them will lie with Unicom, which the source said has about 150,000 Wi-Fi-less iPhones in stock.

Spokespeople from both China Unicom and its mobile terminal subsidiary Unicom Huasheng declined to respond to the reports yesterday, saying they were unaware of the matter.

Keywords: sales volume China Unicom iPhone wireless Wi-Fi Unicom Huasheng Apple 0762.HK 600050.SH CHU handset smartphone pricing

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