“if Apple gets this retail presence, Chinese consumers would be able to buy phones and unlock them for use on China Mobile’s network,” Burrows reports. “Mathison believes Apple could sell as many iPhones through this retail channel in 2010 as it will through its recently announced deal with China Unicom, which he says has a poor network and poor reputation with consumers.”
“Says Mathison in an interview, ‘all of a sudden, the number of iPhones Apple can sell in China in 2010 could double.’ Note that there are also reports that Apple is still in negotiations with China Mobile,” Burrows reports. “Like the China Unicom model, Foxconn’s won’t feature Wifi, he says.”
Full article here.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]
I don’t get it… Why no wifi?
TheConfuzed1,
China. No freedom, no WiFi.
Chinese law.
Regarding China Mobile and Apple…
China Mobile CEO, Wang Jianzhou made his feelings known yesterday during a press briefing, “We have stayed in contact with Apple over the issue of introducing iPhone into the China market” … “Both Ophone and iPhone have their own characteristics and they do not need to compete against each other” says Wang.
Wang Jianzhou’s quote “they do not need to compete against each other” supports my thesis … The bridge between Apple and China Mobile is a 2G (EDGE network) iPhone. China Mobile’s 2G network provides a clear, crisp signal across China, and despite its slower speed (relative to 3G), serves many hundreds of millions of wireless consumers. A low price 2G iPhone might sell by the millions … if not tens of millions.
A TDSCDMA iPhone is out of the picture unless China Mobile taps mother China for cash to pre-purchase a massive quantity of TD iPhone 3Gs. TDSCDMA has received a luke-warm reception by Chinese consumers and China Mobile is moving rapidly to TD LTE 4G. Consequently, it’s my view that Apple won’t build a TD iPhone unless China Mobile agrees to a substantial pre-purchase (5+ million units).
China Mobile and Apple may also chat about TD LTE 4G for 2011 … and possibly a conversation about that new rumored “iTablet thingy” that no one is supposed to know about.
@TheConfuzed1 re WiFi … has to do with a competing China standard called WAPI.
Without going down a deep rabbit-hole (explanation of WAPI vs WiFi), suffice to say that the first iPhone “approved” for China (Model A1324) will not include WiFi. This model may, however, include China’s alternative to WiFi, otherwise known as WLAN authentication and privacy infrastructure (WAPI).
The second iPhone for China (Model A1325 – based on iPhone 3GS) is a more interesting case. This iPhone was submitted to China’s CTTL for mandatory testing in July. There have been conflicting reports on the “WiFi” status of this second iPhone. Since WAPI is sometimes called “China’s WiFi,” it’s easy to see how reports might get garbled; even more so when English/Mandarin language translations are involved.
Okay, let’s try to sort this out … One series of reports from China tech sites/blogs has quoted “inside sources” who claim that iPhone Model A1325 will include WAPI/WiFi in combination. This would not be far fetched, as this WAPI/WiFi stack was recently authorized (May of 2009) by China’s Ministry of Industry and Information Technology (MIIT). Prior to May 2009, WiFi was expressly forbidden on mobile phones. Chinese Netizens have largely ignored this ban as WiFi base-stations cover many urban zones and grey-market (”back of the shop”) WiFi-capable handsets are everywhere. The WiFi ban on officially sanctioned phones has only added fuel to the flourishing grey-market. Consequently, the MIIT felt compelled to throw WiFi a bone by allowing WAPI and WiFi to be stacked together on handsets. This King Solomon’s compromise allows both sides to win. China gets their WAPI standard (and royalty payments) and consumers can get WiFi.
All that said … It is my belief that Model A1325 WILL include the WAPI/WiFi combo. China Unicom CEO Chag Xiaobing has also publicly (very recently) stated that he is hopeful for approval of WAPI/WiFi on iPhone “as soon as possible.”
Regarding iPhone distribution partners … FWIW, here’s my updated list:
China Unicom’s Vsens and major retailers Carrefour (134 superstores in China), Dixintong a.k.a. D-Phone (largest handset chain-store in China – Rumors of an iPhone distribution deal with Dixintong go back to Dec 2007), Gome (610 stores – controlled by Huang Guangyu, China’s richest man) and Suning. There were also unconfirmed reports that Best Buy China and Wal-Mart China might sell iPhones. Cybermart was also in the mix, but that report was denied by Foxconn (Cybermart’s parent). Last but not least … Apple Stores in Beijing – Sanlitun and soon at Qianmen.
Confucius say man who chase car get exhausted.
Who’s to say regular China Mobile customers won’t get their iPhones from their friends and relatives on China Unicom and then just unlock it. Cheap. “Oops I just lost another iPhone.” And I bet they don’t care if it doesn’t syncs with Macs and Mobile Me anyway since most iPhone consumers there can’t afford them anyway.
Burrows reports. “Mathison believes Apple could sell as many iPhones through this retail channel in 2010 as it will through its recently announced deal with China Unicom, which he says has a poor network and poor reputation with consumers.”
Sounds a lot like Apple’s deal with AT&T;! LOL!
Does China allow wifi anything? Laptops, iPod touch, net books?
@ TheConfuzed1,
“I don’t get it… Why no wifi?”
They will sell them cheap in China. They have no WiFi so that no one will unlock them and export these cheap iPhones to The USA.
@freebeer China Mobile runs the TDSCDMA 3G standard. iPhone’s chipset does not support TDSCDMA. The iPhone will, however, run on China Mobile’s EDGE 2G network. The lower cost model iPhone for China Unicom (A1324) will not have WiFi (only WAPI) so running just EDGE w/o WiFi may not be exciting enough to motivate owners to jailbreak this model (A1324) to run on China Mobile’s EDGE network.
The more expensive iPhone model for China Unicom (A1325) will be based on iPhone 3GS and will very likely include WAPI/WiFi. I could see some who might jailbreak this iPhone to run on China Mobile’s network … but again you would be dropping down from WCDMA 3G speeds to EDGE 2G.
It’s more likely that China Mobile customers will buy WiFi-enabled iPhone 3G from Hong Kong (Hutchison 3) and jailbreak to run on China Mobile’s EDGE network. But the grey-market handsets can be pricey.
IMO the best option for China Mobile is do a deal with Apple for a low-priced 2G iPhone, pre-loaded with apps that support China Mobile’s services. There are still complexities. Apple will need to work w China Mobile on the App Store. There are licensing and server location issues (App Store servers must be in China) that need to be overcome in China. China Mobile has also invested heavily in their own App Store (Mobile Market) and it’s unclear whether Apple would consider integrating with Mobile Market.
@Synthmeister << Does China allow wifi anything? Laptops, iPod touch, net books? >>
Yes … China does allow WiFi on laptops/netbooks but not on handsets (mobile phones or devices ala iPod touch). China wants to support their on WAPI standard (alternative to WiFi). They also have concerns over VoIP calling and WiFi on handsets can facilitate VoIP apps. WAPI will allow China to “monitor” hence they have less concern over WAPI.
There is mounting evidence that the second model iPhone will include a WAPI/WiFi stack … So yes it appears that there will be WiFi on iPhone. China’s policy changed in May 2008. FWIW I outlined this in a prior comment
Apologies … China WiFi policy changed in May 2009 (not 2008). The policy allows WAPI and WiFi to run in combination. But not WiFi on its own. WAPI almost certainly has a backdoor that will allow the state to “monitor” … it’s China, they’re used to it.
o_O take a breather butterfield
Your posts are very informative but no one is allowed to rival daniel eran dillager!
@Urlow … Agreed … Daniel Eran Dilger is the man. I’ll shut up now
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
Dan Butterfield 8 ….
Damn, thanks for that comprehensive explanation of what those Chinese Unicorn’s are up to
And …
Perhaps our favorite Microsoftie – Zuney can get a job with that “cell-phone retailer”
Then he would be Xing Tong Zune Tang …
” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />
BC
I agree, thanks Dan.
Here is the link to Dan’s site – http://iphonasia.com/
Well worth a visit and a bookmark … me thinks.