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Saturday, December 5, 2009

Only 5 iPhones Sold in Two Weeks by China's Largest E-Tailer

To say that the iPhone is a flop in China is to put it mildly

China is arguably the world's biggest potential electronics market. If you can make a product that's a big hit with Chinese consumers it's almost as big a deal as a hit product in the U.S. -- and China's buying power is expected to only grow even more in the near future. Thus optimism was high when the iPhone finally launched in China.

However, in the time since, the iPhone has proved an epic flop in China even as Chinese telecoms try to defend their weak sales. China Unicom, the phone's carrier only managed to sell 5,000 handsets in the phone's first few days, far less than at equivalent launches in the U.S., UK, France, and Germany. While the telecom says it is satisfied with the phone's sales performance, the numbers are disappointing for a phone that has burned up international sales charts.

One major problem is price. The phone is available in China for 6,999 yuan, or $1,024 without a contract, but can be purchased much cheaper in Hong Kong's so-called "grey market". The grey market cost in Hong Kong is approximately $800. Sales were also hindered by the exclusion of Wi-Fi from the phone, following China's ban on the standard, which it was trying to replace with its own standard. Since May China has begun reallowing Wi-Fi, but new Wi-Fi-ready models still aren't available yet in China.

[via Daily Tech]

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