Chinese iPhone sales reach 100,000, overcome Apple's slow start
Despite only selling 5,000 handsets at launch in late October, Apple's iPhone has since sold at a steady pace, moving 100,000 devices since its debut.
While the number still isn't outstanding, it's a good sign for the device's future, according to Dow Jones Newswires. For comparison, the debut of the iPhone in 2007 moved 270,000 units in the U.S., while the June 2009 debut of the iPhone 3GS sold over one million phones.
And while the six-figure sales in China suggest demand for the device has grown since its launch, some still believe it's not enough. One analyst noted that an additional 100,000 iPhone users among China Unicom's 144 million wireless subscribers will not make a huge difference for the company.
But part of China Unicom's strategy is bolstering its brand-new 3G network, which launched alongside the introduction of the iPhone. The company stated it hoped to add over 1 million 3G users every month, and it reached that goal in October.
China Unicom is also a beneficiary of China's broad gray market, where many unlocked, no-contract iPhones are believed to be purchased at prices cheaper than what the wireless carrier offers. At the moment, those users are most likely to use their handset on China Unicom, which is the only network that supports the phone's 3G capability.
In November, China Unicom executives revealed that the iPhone had sold just 5,000 units in its first four days. Analysts believe the device was held back by its lack of Wi-Fi -- excluded because of a temporary ban on the technology by the Chinese government -- and the availability of devices on the gray market. Still, officials with China's second-largest wireless provider have high hopes for the iPhone, predicting that 10 percent of their 3G customers will use Apple's smartphone in the next three years.
On Monday it was revealed that Apple sold 60,000 iPhones in the device's launch in South Korea. Compared to the 400,000 total smartphones sold in the country in the third quarter of 2009, Apple's debut would represent 15 percent of that market.
While the number still isn't outstanding, it's a good sign for the device's future, according to Dow Jones Newswires. For comparison, the debut of the iPhone in 2007 moved 270,000 units in the U.S., while the June 2009 debut of the iPhone 3GS sold over one million phones.
And while the six-figure sales in China suggest demand for the device has grown since its launch, some still believe it's not enough. One analyst noted that an additional 100,000 iPhone users among China Unicom's 144 million wireless subscribers will not make a huge difference for the company.
But part of China Unicom's strategy is bolstering its brand-new 3G network, which launched alongside the introduction of the iPhone. The company stated it hoped to add over 1 million 3G users every month, and it reached that goal in October.
China Unicom is also a beneficiary of China's broad gray market, where many unlocked, no-contract iPhones are believed to be purchased at prices cheaper than what the wireless carrier offers. At the moment, those users are most likely to use their handset on China Unicom, which is the only network that supports the phone's 3G capability.
In November, China Unicom executives revealed that the iPhone had sold just 5,000 units in its first four days. Analysts believe the device was held back by its lack of Wi-Fi -- excluded because of a temporary ban on the technology by the Chinese government -- and the availability of devices on the gray market. Still, officials with China's second-largest wireless provider have high hopes for the iPhone, predicting that 10 percent of their 3G customers will use Apple's smartphone in the next three years.
On Monday it was revealed that Apple sold 60,000 iPhones in the device's launch in South Korea. Compared to the 400,000 total smartphones sold in the country in the third quarter of 2009, Apple's debut would represent 15 percent of that market.
Comments
I would wait for WiFi.
China Unicom may have 144M subs but how many are smartphone users? I’d love to see that number.
That seems high to me given the circumstances. Perhaps some areas don’t have a grey market.
China Unicom may have 144M subs but how many are smartphone users? I’d love to see that number.
I saw a comment that about 1% of cell phone users can afford and use the smart phones in China. Rest of them own flip phones or cheap phones because they cannot afford. Out of 1.4 million subscriber's in Unicom's network, iff they sold 100,000 units so far, which equals to 7.14% of smart phone owners have iPhone in 5 weeks. Not that bad.
That seems high to me given the circumstances. Perhaps some areas don?t have a grey market.
China Unicom may have 144M subs but how many are smartphone users? I?d love to see that number.
I saw a comment that about 1% of cell phone users can afford and use the smart phones. If Unicom sold 100,000 units in 5 weeks with a smart phone population of 1.4 millions out of total subscribers, that translates 7.12% of smartphone owners have iPhone. Not too bad for 5 weeks sale
Despite only selling 5,000 handsets at launch in late October, Apple's iPhone has since sold at a steady pace, moving 100,000 devices since its debut.
5,000 dummies in China, with the Chinese government buying the other 95,000 overpriced, wifi less iPhones.
Meanwhile millions of cheaper blackmarket iPhones WITH wifi and other features are selling briskly.
Hmm, talk for free over wifi with a cheap iPhone and local support, or buy a expensive iPhone with no wifi and no free calling.
This will be a interesting watch...
If I were Chinese and looking at the iPhone for my next upgrade.
I would wait for WiFi.
'Zactly.
5,000 dummies in China, with the Chinese government buying the other 95,000 overpriced, wifi less iPhones.
Remember that Apple has already sold all of these phones to China Unicom, the wireless provider (a pseudo-private enterprise). I don't believe these neutered iPhones can be returned to Apple.
BTW, the government isn't buying anything. This is the paradox that is the PRC: sometimes it's communist, sometimes it's socialist, sometimes it's capitalist. The only thing you can guarantee with the PRC today is that dissent will be swiftly and brutally punished.
Meanwhile millions of cheaper blackmarket iPhones WITH wifi and other features are selling briskly.
The cheaper phones aren't blackmarket. They are available unlocked from the vendor in Hong Kong to anyone with the money to buy one. Blackmarket not required.
If I were Chinese and looking at the iPhone for my next upgrade.
I would wait for WiFi.
I would too. I waited until the second generation iPhone because the first one didn't support 3G.
That seems high to me given the circumstances. Perhaps some areas don?t have a grey market.
.
ALL areas have black markets and grey markets. What China lacks is actual legitimate markets in many locations. Go to a town and find a legitimate music or software store. There won't be a legitimate one; only a black market one.
Which makes these constant China updates utterly ridiculous. They need to stop posting these vacant, meaningless updates. If people are that clueless about the China market, they should not be commenting professionally.
I would too. I waited until the second generation iPhone because the first one didn't support 3G.
why did not you wait for 4G or later?
5,000 dummies in China, with the Chinese government buying the other 95,000 overpriced, wifi less iPhones.
Meanwhile millions of cheaper blackmarket iPhones WITH wifi and other features are selling briskly.
Hmm, talk for free over wifi with a cheap iPhone and local support, or buy a expensive iPhone with no wifi and no free calling.
This will be a interesting watch...
why are you so keen on wifi? do you know how many ppl in china using cell phone want to access wifi? more options on a given device such as iphone might make sense in one place, but not in other place. do you know how much the effort a tech support would have to do to resolve an interconnect issue between iphone and a private wifi home server? were i china unicom, i would like very much to avoid such hassle first. instead, if china unicom can provide better 3G services to its customers(better than what att does to you and me), so that data usage can be profitable for them, then its iphone is a successful story. if china unicom iphone customers are complaining its lack of wifi and want a one, china unicom then would consider it. this is just a normal customer-provider relationship.
rumor 1: car sale is going up to roof in china now, but gas usage is not coming up. so wall street is conjuring a theory that chinese government bought all those cars instead of consumers.
rumor 2: some years back, chinese government bought some used mint machine from US. then ever since then, they kept printing money and now china has $2trillion reserve.
That seems high to me given the circumstances. Perhaps some areas don?t have a grey market.
China Unicom may have 144M subs but how many are smartphone users? I?d love to see that number.
there are something different in US from that in eastern asia.
i bought a mercedes car in US for a friend in china. at the time my dealer told me that almost all of this particular style mercedes suv are sold out across US and they all shipped to china! so it looks like that this car is hot sale in china. over the phone i talked to my friend about the options for the car. he wanted every option possible, and specifically he asked for GPS. but that GPS does not work in china. well he does not care, and he wants it simply because his friend's car has it.
it would make more sense to talk about the percentage of smartphone users in US than in china. if iphone can be a prestigious device in china, i would bet that a village rich kid would have one even though he can only make couple of phone calls, let alone access internet or play its smartness.
marketing 101 in US needs to be modified a bit in china.
Good news is that iPhone sales figures have been updated to 100,000 units in 9 days in South Korea. Way to go apple!
The smartphone market was reported at 300K prior to the iPhone?s launch. Is that number correct? Does the iPhone now have 25% of the S Korean smartphone market?
The smartphone market was reported at 300K prior to the iPhone?s launch. Is that number correct? Does the iPhone now have 25% of the S Korean smartphone market?
I think the number was 400,000 smartphones, so that would be 500,000 total smartphones including iphone? then, it would be 20%
The word-of-month network is slowly building there. One person tells two friends and they each tell two friends and so on. In 30 days less than half of China will know about the iPhone. Only 1-2% will be able to actually buy one.
Chinese whispers?