Filed under: Analysis / Opinion, Apple Corporate, Retail, Apple Financial, iPhone

Two weeks into official iPhone sales,
China Unicom has sold only 5 units* through the online retailer
Taobao.com according to
PCWorld. China Unicom sells iPhones through its own site, but doesn't share sales figures. Still, PCWorld reports, Taobao.com is the country's largest e-commerce site, and has
a large iPhone section.
What could account for the poor performance?
The Golden Shield Project for one, which (among other things) prevents the sale of iPhones with Wi-Fi enabled. iPhones purchased outside of China do have Wi-Fi, of course. Another factor could be China's bustling black market. Despite the recent official release, the iPhone has been available in China for quite some time now. AppleInsider
estimates that nearly 2 million iPhones are already circulating China, most of them jailbroken.
Cost is another factor. For example, a contract-free 32GB iPhone 3GS costs 6,999 yuan (approximately US$1,024 as of this writing) in China, compared to about US$800 in Hong Kong.
The news isn't all gloom-and-doom, however. AppleInsider
reports that those who do purchase iPhones legitimately are flocking to the App Store. Still, the problem of getting more official iPhones into the hands of Chinese customers remains.
*As of Dec. 3rd, 2009.China Unicom's dismal iPhone sales originally appeared on The Unofficial Apple Weblog (TUAW) on Fri, 04 Dec 2009 11:00:00 EST. Please see our terms for use of feeds.
China Unicom's dismal iPhone sales originally appeared on The Unofficial Apple Weblog (TUAW) on Fri, 04 Dec 2009 11:00:00 EST. Please see our terms for use of feeds.
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