By: Steph Dlugon
The iPhone is now available in China, but for most consumers it’s considered too expensive to be an option.
A recent Wall Street Journal article by Loretta Chao delves into how the phone’s pricing structure is having a huge impact on sales.
China Unicom (Hong Kong) Ltd., offers a version of the 32-gigabyte iPhone 3GS for 6,999 yuan ($1,024) without a service contract. Consumers in nearby Hong Kong pay roughly over $400 less for the same device.
“When wrapped together with a service plan, as is generally done in the U.S., the phone will cost Chinese subscribers at least $3,120 over two years, compared with the roughly $2,600 cost for the same period for customers in the U.S.” according to Chao.
The iPhones offered by Unicom don’t include WiFi functionality because of government restrictions. In addition, device competition is expected to heat up with upcoming releases including phones running the Google Android platform.
Other smartphone manufacturers in the region don’t seem concerned about losing marketshare because of the iPhone’s steep price.
