China Unicom exec says iPhone price cut possible
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A China Unicom employee displays an iPhone in Shenyang, Liaoning province. [Wen Xuan / China foto press] |
China Unicom has adopted a high-price strategy for iPhone since it introduced Apple's popular smartphone in China in October last year.
But it seems that China's No 2 cellphone carrier may now consider making the iPhone more affordable in the world's largest mobile population.
A top executive of China Unicom told China Daily on Friday that he "understands" Chinese consumers' demands for a cheaper iPhone.
"For Chinese consumers, the cheaper the iPhone price the better and we totally understand that," said Chang Xiaobing, the company's chairman, on the sidelines of the ongoing annual session of the National People's Congress in Beijing on Friday.
But he noted that the company does not have an absolute say on price cuts because it has to get the nod from Apple Inc.
Chang's remark seems to be in line with earlier reports that Unicom may reduce the price of iPhones by 20 to 30 percent at the end of this month.
Chinese media cited a report from Merrill Lynch earlier this week as saying that Unicom may lower the iPhone's price to 3,000 yuan ($439) to 3,500 yuan from the current 4,999 yuan to 6,999 yuan, but this was later denied by the company.
Chang said on Friday that iPhone sales are "normal" in the country.
The China Unicom chairman also confirmed that the company is in discussions with Apple Inc on the possibility of delivering an "official" WiFi-enabled iPhone to China. This will enable users to get free access to the Internet in locations such as cafes and airports.
According to Unicom, an iPhone without a service contract costs starting at 4,999 yuan ($732) in China, compared with $299 in the United States.
The high price was believed by many to have put off a great deal of Chinese consumers and even turned them to dealers in smuggled iPhones.
According to figures from China Unicom, the carrier sold more than 300,000 iPhones in China in the two months since its official debut in the country.
But many telecom industry analysts believe that a significant portion of these purchases were made by China Unicom employees.
"The price of the iPhone is too expensive in China and that will only benefit iPhone smugglers," said Pang Jun, an analyst from research firm GFK China.
He said that a price reduction will inevitably give a significant boost to iPhone sales in China.
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