China Unicom is reportedly close to signing a deal with Apple which would give the mobile operator exclusive rights to sell the iPhone in China. However, rival China Mobile is thought to be persisting with negotiations. China Mobile has a distinct market advantage due to its 488m users compared with Unicom’s 133m.
Kaufman Bros analyst Shaw Wu says Apple currently favours the deal with Unicom. The company is believed to be offering Apple larger subsidies and more control over the device and its software. In return, Unicom will get the opportunity to grow its market share. Unicom is also planning to roll out an iPhone-compatible 3G network within the next few months, meaning Apple can sell the same phones in China as it does elsewhere.
Apple is keen to break into the Chinese mobile market, which offers a huge opportunity for growth. Currently, mobile phone penetration in China is around 51%, compared to between 85% and 95% in the US.
StrategyEye's related categories: Mobile Operators - General, Mobile Phone Devices
StrategyEye's related companies: China Mobile, China Unicom, Apple, Inc.
