iPhone begins to impact Chinese mobile scene
Now that the iPhone 4 is available in China, the Chinese impact on Apple worldwide sales may finally be significant. As it turns out, they may be even more significant for Chinese wireless companies.
As we all know by now, the iPhone 4 has been a big hit everywhere it has been introduced, and Apple has been reaping the rewards. There has been some question as to whether or not the iPhone would ever do really well in China after a lackluster start with the 3G model. There is no longer a question, given the sales after the new model launched there September 25. China Unicom, Apple’s (currently) exclusive reseller in China, sold 100,000 iPhone 4 handsets in just a week. Both Apple and China Unicom completely sold out at retail, for sales of 200,000 that first week.
It is possible, though, that this may be even a better deal for China Unicom than it is for Apple, if that’s possible. China Unicom is China’s second-largest wireless carrier behind China Mobile in this largest of all cell phone markets. But, thanks to the iPhone, number two is growing faster than number one, according to a PCWorld story. Mark Natkin, managing director of Bejing-based Marbridge Consulting, says “The iPhone has had a significant role, and now that they’ve landed the iPhone 4, it will have an even more significant role. … Suddenly, China Mobile’s numbers don’t look so fabulous.”
Part of the reason for this is that China Mobile uses a home-grown wireless system (TD-SCDMA) which is not used anywhere outside China. Because the iPhone is on more of a world standard system. Benjamin Joffe, CEO of Internet research firm Plus Eight Star, says “So despite the weaker marketing power and image of China Unicom, it is proportionally doing a much better job with 3G than China Mobile, which should have about triple the number of China Unicom’s users, not just 40 percent more.” If numbers like that continue to hold, maybe Number Two won’t be number two for long.
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