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Iphone was acclimatized in China that Unicom sell part profits

Todays Date: April 23, 2017

China’s second largest mobile phone operator, China Unicom, finally face the reality. This year the company will allocate 3 billion to 5 billion yuan (440million -730 billion $) to make concession to consumers on selling iPhone and other 3G phones.

Some of the 3G iPhone price cut 30% of tariff packages according to subsidy policy that take effect from May 1st.

Apple,the money tree, looks like not acclimatized in China, and should this be the phrase: all things change with environment changes?

China Unicom launched iPhone in October last year, which was the only legitimate sales channel in China. At that time, China Unicom seemed to regard iPhone as a magic weapon to wrest customers away from China Mobile, which was the monopolist in the past, and now the market leader in China.   

However, sales of iPhone are still slow after 6 months, and also lost to imported iPhone from gray market. At the same time, the speed of new users’ growth in China Mobile is 3.5 times of China Unicom.

Competing for customers of China Unicom demonstrates that telecom operators should pay increasing cost to win market share in China, in the world’s largest mobile phone market.

Reducing the cost of smart phones will have some effect, but probably it is not enough, because China Unicom’s competitors are at least as aggressive as China Unicom in the expansion of high-end mobile phone market.

The smallest of three telecom operators in China, China Telecom, is often one of the most flexible one. A recent example is that China Telecom will become the first operator to sell personal BlackBerry(blackberry cases) from next Monday. 

According reports from foreign media, due to the market demand for cell phones with video and Internet access, global sales of Apple’s iPhone, and BlackBerry from RIM (Research In Motion Ltd), exceeded Motorola for the first time in the first quarter of this year.

Said on Monday by the US market research firm, ISuppli, that market share of RIM grew to 3.6%, while Apple’s increased to 3.04%. Compared with fourth quarter of last year, only the two companies gained growth in cell phone sales. The research firm’s figures also show that Motorola’s global market share decreased from 3.6% to 3% in the first quarter.

Sales volumes of iPhone and the BlackBerry and other smart phone are surpassing. Smart phone (cell phone accessories)can make users to browse the Web and so on, while ordinary mobile phone is only limited to calls and sending text messages. ISuppli said that in the global top ten mobile phone manufacturers, only Apple and RIM in Canada have their own brand of smart phones. Analyst Tina Teng of ISuppli said, “Smart phones are shaping the wireless industry competition.” in this research report. From: best iphone cases

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