World of Apple

China Unicom announced Friday that it had come to a deal with Apple to distribute the iPhone in China.

The announcement comes after several months of speculation that the number two Chinese Carrier with 140 million subscribers would receive the iPhone.

“We believe China Unicom’s high-speed mobile broadband network, coupled with … (the iPhone) will create new communication and different experiences for customers in China,” said China Unicom CEO Chang Xiaobin.

The company also released a statement, within it stating that a three-year deal had been made on Aug. 28 and that the initial launch was expected to occur in the fourth quarter of 2009. No details of pricing or revenue sharing were announced.

Despite no official word that the iPhone has received a network access license for operation on any Chinese network a new report today suggests that a deal between Apple and China Unicom could be officially announced tomorrow.

The Chinese carrier is set to hold a media briefing on Friday to discuss its fiscal results for the first half of 2009 and a China Unicom spokesman has said that the iPhone “would undoubtedly be discussed,” according to Reuters.

Additionally the report states “Apple’s iPhone manufacturing partner Hon Hai is making the iconic handset for a Chinese company, an official at the Taiwanese firm said, declining to be named as he was not authorised to speak to the media”.

Interfax TMT is reporting that China’s Ministry of Industry and Information Technology (MIIT) is expected to soon grant the iPhone a Network Access License in China. According to the industry source the NAL will be given to iPhone Model A1324.

According to iPhonAsia mentioned is that the custom WCDMA iPhone with no WiFi connectivity will also come pre-loaded with apps specifically for China.

Following reports that China Unicom purchased five million iPhone units for sale in China, the company has now denied the reports.

“Talks between us and Apple have been going on for some time, but no agreement has been reached yet,” China Unicom spokesman Yi Difei told The Associated Press. “There are all kinds of possibilities. There is no particular timetable for the talks.”

Reports that China Unicom had purchased five million WCDMA model iPhones, without WiFi were originally reported by China Business News who quoted Yu Zaonan, general manager of the customer development department of China Unicom in Guangzhou.

The International Business Times is reporting that Apple has sold 5 million iPhone units to rumoured Chinese carrier China Unicom. The units were reportedly purchased by China’s second largest carrier for 10 billion yuan suggesting that the custom WCDMA iPhones with no WiFi sold for 2,000 yuan each ($293 USD).

Yu Zaonan, general manager of the customer development department of China Unicom in Guangzhou said “The price of the 8G standard iPhone is set at about 2,400 yuan and the 16G may be sold at 4,800 yuan”.

Apple is reportedly making profits of between 1,000 and 1,100 yuan for each device sold.

Neither Apple or China Unicom has officially confirmed a deal between the two companies.

Mobile Entertainment adds to recent reports that O2 UK will lose its exclusive arrangement to sell the iPhone in the UK. Mobile Entertainment pinpoints October 9, 2009 as the date that O2 will no longer have an exclusive agreement with Apple in the UK.

O2 will continue to have rights to sell the iPhone through 2012, an O2 spokesperson told Mobile Entertainment, “All I can say is that O2 has a multi-year exclusive on iPhone – and that this remains in place.”

Sina.com.cn reports that a number of senior Apple officials have flown to China this week according to an unnamed but “informed source”.

Sina.com.cn adds that “Their visit aims to visit [sic] senior officials of China Unicom and discuss with them how iPhone should enter Chinese market,” the report also adds that Apple officials could meet with officials from the Ministry of Industry and Information Technology (MIIT).

The Chinese based site has also posted photos of what it claims is an iPhone destined for the Chinese market.

Last week World of Apple reported that the iPhone has received regulatory approval. At the time we reported that a an entry on the SRRC (State Radio Regulatory Commission) website referred to approval of the iPhone for sale in China, presumably by China Unicom carrier.

According to an article on iPhoneAsia the receipt of radio transmission certificate “is not news”, as the iPhone is yet to be approved for sale due to the lack of a network access license.

The Register reports that T-Mobile UK has begun selling iPhone 3G handsets to a select number of customers. According to The Register only high spending customers who threaten to leave will be eligible for the iPhone 3G and even then T-Mobile is allowing only 150 sales per week.

The report comes not long after rumours that O2 would be losing it’s exclusivity over the iPhone 3G whilst retaining it on the iPhone 3GS.

The Register goes onto speculate that T-Mobile is most likely importing unlocked iPhone handsets from a European country for sale in the UK. O2 confirmed to the news site that it stills retains exclusivity over all iPhone models.

According to a report by Shanghai Securities News Apple and China Unicom have entered into a three-year agreement to begin selling the iPhone in China.

The source stated to Shanghai Securities News that China Unicom could begin selling the iPhone around late September and the agreement set a minimum sales threshold of CNY 5 billion ($731 million), effectively guaranteeing Apple sales of one to two million devices per year.

Following this report Reuters posted that China Unicom spokesperson Sophia Tso had said that “Discussions are still ongoing, we have not reached any formal agreement,” an Apple spokesperson declined to comment.

China Unicom had 135 million subscribers as of February 2009 and runs a standard GSM/UMTS 3G network – the same as AT&T’s network in the United States.