Chinese Unicom purchases around 5 million iPhones

International Business Times has announced that the Chinese wireless service, China Unicom has purchased around 5 million reigion specific iPhones from Apple, and will release it to the public around next month.

China Unicom, the potential exclusive distributor of iPhones in China, has poured 10 billion yuan ($1.46 billion) to buy 5 million units from Apple, ready to sell the first batch in September, local media reported on Wednesday.

China Unicom had already paid Apple 10 billion yuan ($1.46 billion) for 5 million WCDMA standard iPhones with unit price of 2,000 yuan ($293), CBN news said, citing a well-informed source.

The report also notes that Apple has changed it’s current Business Model, from changing it’s traditional version of sharing it’s dividends with it’s distributors, with it finding that international carriers of the iPhone fail to subsidize the phone appropriately, and as a result, the cost of an iPhone is a lot more, perhaps several hundred dollars more than in America.

Apple made compromises in the China market because of its great demand

and intense competition, but Apple can still make profits from each unit from 1,000 yuan and 1,100 yuan as China Unicom offers a good price for each unit.

The Chinese iPhone will be seen as costing around 2,400 Yuan ($350) for the 8GB version, with the 16GB version being offered at 4,800 Yuan ($700)

External Links

Google News (Press Association) – Chinese telco in iPhone talks