China Unicom (CHU) Snubs Apple (AAPL) in Effort to Gain Subs
Up)
China Unicom (NYSE: CHU) added 3.49 million subscribers in December, a record for the company. But their gain in subs might come at the expense of another company: Apple.
According to data Thursday, China Unicom, the only carrier in China with a contract to sell Apple (Nasdaq: AAPL) devices, has been gaining subscribers by pushing the sales of cheaper alternatives to the iPhone line.
Compared with the 4,988 yuan price target for a 16-gigabyte iPhone 4S, alternatives carrying 1,000 yuan price tags and having nearly the same features -- at least, as customers perceive -- have been selling like hotcakes and, more importantly, drawing in more 3G subs.
Bloomberg noted that 1,000 yuan (about $158) amounts to half of a typical urban worker's monthly income.
Not to say there's a lack of iPhone-hungry customers in China. Just last week hordes of angry customers waiting for an iPhone 4S pelted a Beijing store after learning there would be limited quantities and some would not be able to get the device.
Currently, China Telecom (NYSE: CHA) is also working with the Chinese government in getting clearance to sell the iPhone.
More recent data from Gartner also suggests that Apple is losing its grip in China. Gartner says Apple sold 5.6 million iPhones last quarter in China, seeing its market share slip from 13.3 percent to 10.4 percent. Meanwhile, rivals like ZTE and Huawei have seen sales of their cheaper devices increase by multiples, and gaining market share in the process. Huawei currently holds an 11 percent share of the Chinese smartphone market, while ZTE moved up to 8.4 percent.
Apple has moved back into positive territory, not up about 0.1 percent Thursday.
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According to data Thursday, China Unicom, the only carrier in China with a contract to sell Apple (Nasdaq: AAPL) devices, has been gaining subscribers by pushing the sales of cheaper alternatives to the iPhone line.
Compared with the 4,988 yuan price target for a 16-gigabyte iPhone 4S, alternatives carrying 1,000 yuan price tags and having nearly the same features -- at least, as customers perceive -- have been selling like hotcakes and, more importantly, drawing in more 3G subs.
Bloomberg noted that 1,000 yuan (about $158) amounts to half of a typical urban worker's monthly income.
Not to say there's a lack of iPhone-hungry customers in China. Just last week hordes of angry customers waiting for an iPhone 4S pelted a Beijing store after learning there would be limited quantities and some would not be able to get the device.
Currently, China Telecom (NYSE: CHA) is also working with the Chinese government in getting clearance to sell the iPhone.
More recent data from Gartner also suggests that Apple is losing its grip in China. Gartner says Apple sold 5.6 million iPhones last quarter in China, seeing its market share slip from 13.3 percent to 10.4 percent. Meanwhile, rivals like ZTE and Huawei have seen sales of their cheaper devices increase by multiples, and gaining market share in the process. Huawei currently holds an 11 percent share of the Chinese smartphone market, while ZTE moved up to 8.4 percent.
Apple has moved back into positive territory, not up about 0.1 percent Thursday.
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