Subscribe to this blog
The Tech Dynasty
Navigating the bamboo scaffolding of China's rapid-rising tower of technology
Jul 12, 2009 17:58
iPhone finally coming to China, but who cares?
Posted by RyanM
When BusinessWeek's Peter Burrows reported the other day that Apple has finally applied for a Network Access License with China's Ministry of Industry and Information Technology (MIIT), 1.3 billion potential Chinese customers collectively shrugged their shoulders.
If approved, the Network Access License would be the final checkbox on the iPhone's long list of hoops it has had to jump through to officially launch in China. The expected OK from MIIT means we may see made-for-Mainland iPhones at Apple stores and authorized retailers by next February's Spring Festival.
Whoop. Tee. Doo.
I mean, congratulations to Apple for having finally managed to navigate the complex and kowtow-requiring process of doing business in China. However, it will simply be a couple years too late.
The iPhone is already a widely successful product in China. Sure, its instruction booklet is in traditional characters, and the warranty sucks, but that hasn't stopped an estimated million+ folks from buying one. Hong Kong iPhones have been flowing into the Mainland since the smartphone landed there this time last year.
And if cross-market competition wasn't enough to rain on the mobile's China "debute", the Chinese iPhone is required to be de-WiFi'd. Yep, one of the most significant and useful features of the phone will be removed before the handset is put under the glass at your local Apple store.
All this means is that the majority of iPhone wanters will buy a jailbroken WiFi-enabled one, thereby null and voiding the value of the warranty. Either that or they'll just continue purchasing the non-modified WiFi-enabled one from Hong Kong, which comes with an equally useless warranty.
While I do respect that a good warranty can be a deal sealer, trading feature-rich phone now for possible protection later goes against all the small fibers of our instantly gratified nature.
Add to this the fact that foreign-brand electronics are almost universally more expensive in the Mainland than they are in HK (or via proxy, on the grey market), and I just can't see what the advantage is to buy the "legit" iPhone. No, I believe it's much more likely that in-China Apple lovers will be sporting the new iPhone 3GS long before the Year of the Tiger arrives.
(Photo via Peopleware)
If approved, the Network Access License would be the final checkbox on the iPhone's long list of hoops it has had to jump through to officially launch in China. The expected OK from MIIT means we may see made-for-Mainland iPhones at Apple stores and authorized retailers by next February's Spring Festival.
Whoop. Tee. Doo.
I mean, congratulations to Apple for having finally managed to navigate the complex and kowtow-requiring process of doing business in China. However, it will simply be a couple years too late.
The iPhone is already a widely successful product in China. Sure, its instruction booklet is in traditional characters, and the warranty sucks, but that hasn't stopped an estimated million+ folks from buying one. Hong Kong iPhones have been flowing into the Mainland since the smartphone landed there this time last year.
And if cross-market competition wasn't enough to rain on the mobile's China "debute", the Chinese iPhone is required to be de-WiFi'd. Yep, one of the most significant and useful features of the phone will be removed before the handset is put under the glass at your local Apple store.
All this means is that the majority of iPhone wanters will buy a jailbroken WiFi-enabled one, thereby null and voiding the value of the warranty. Either that or they'll just continue purchasing the non-modified WiFi-enabled one from Hong Kong, which comes with an equally useless warranty.
While I do respect that a good warranty can be a deal sealer, trading feature-rich phone now for possible protection later goes against all the small fibers of our instantly gratified nature.
Add to this the fact that foreign-brand electronics are almost universally more expensive in the Mainland than they are in HK (or via proxy, on the grey market), and I just can't see what the advantage is to buy the "legit" iPhone. No, I believe it's much more likely that in-China Apple lovers will be sporting the new iPhone 3GS long before the Year of the Tiger arrives.
(Photo via Peopleware)
- Talkback
-
idannyb says...
Hi Ryan,
While all signs point to no WiFi on the "official" iPhone for China, there is a chance that Apple will submit a dual WAPI/WiFi model that would meet China's requirements. Yet I'll concede that this is a long shot.
Based on purported insider leaks to China's tech press in March, Apple submitted two models for testing - one with WiFi and one without. Yet based on everything that I've read, China's MIIT has allowed only one model to continue through the testing process - Model A1324. This appears to be a new Apple iPhone developed for the China market. It may come preloaded with several "for China" apps (e.g. Youku, Hanwang, etc) but it will most likely come sans WiFi.
Interfax TMT reported on April 7 that Apple had agreed to provide a majority share of App Store revenue to China Unicom. This leads me to believe that China Unicom has agreed to allow Apple to control delivery of wireless value added services (WVAS) and will allow iPhones to load apps via Apple's China App Store (vs the app store that China Unicom will soon launch). I would imagine that as part of the negotiation quid-pro-quo, China Unicom will agree to pay a modest per unit subsidy and that the official iPhone will be priced significantly lower than grey market iPhones coming in from Hong Kong.
One item of note is that the iPhone 3GS has now landed in Hong Kong (July 10) and the SIM unlocked version can now be ordered through Apple's HK Online Store. I've heard reports that the SIM unlocked models were sold out in a matter of hours. But not to worry, they'll (Apple/Hon Hai) soon make more. SIM unlocked models must be shipped to a Hong Kong address. Too bad they need to swim across the channel and then back again.
SIM unlocked iPhone 3GS for 16GB HKD 5,388 ($695 US) and 32GB HKD 6,288 ($811 US) respectively.
In addition to Model A1324, I'm holding out hope (pure speculation) for another new model iPhone later in 2010. This model would be a low-priced "2G only" iPhone and would be available to any China carrier (unlocked). This model would be aimed at prepaid wireless consumers in BRIC nations, particularly in China and India.
Thanks for your article and insights,
~ Dan Butterfield
www.iPhonAsia.com
Jul 13, 2009 05:37
Hi Ryan,
While all signs point to no WiFi on the "official" iPhone for China, there is a chance that Apple will submit a dual WAPI/WiFi model that would meet China's requirements. Yet I'll concede that this is a long shot.
Based on purported insider leaks to China's tech press in March, Apple submitted two models for testing - one with WiFi and one without. Yet based on everything that I've read, China's MIIT has allowed only one model to continue through the testing process - Model A1324. This appears to be a new Apple iPhone developed for the China market. It may come preloaded with several "for China" apps (e.g. Youku, Hanwang, etc) but it will most likely come sans WiFi.
Interfax TMT reported on April 7 that Apple had agreed to provide a majority share of App Store revenue to China Unicom. This leads me to believe that China Unicom has agreed to allow Apple to control delivery of wireless value added services (WVAS) and will allow iPhones to load apps via Apple's China App Store (vs the app store that China Unicom will soon launch). I would imagine that as part of the negotiation quid-pro-quo, China Unicom will agree to pay a modest per unit subsidy and that the official iPhone will be priced significantly lower than grey market iPhones coming in from Hong Kong.
One item of note is that the iPhone 3GS has now landed in Hong Kong (July 10) and the SIM unlocked version can now be ordered through Apple's HK Online Store. I've heard reports that the SIM unlocked models were sold out in a matter of hours. But not to worry, they'll (Apple/Hon Hai) soon make more. SIM unlocked models must be shipped to a Hong Kong address. Too bad they need to swim across the channel and then back again.
SIM unlocked iPhone 3GS for 16GB HKD 5,388 ($695 US) and 32GB HKD 6,288 ($811 US) respectively.
In addition to Model A1324, I'm holding out hope (pure speculation) for another new model iPhone later in 2010. This model would be a low-priced "2G only" iPhone and would be available to any China carrier (unlocked). This model would be aimed at prepaid wireless consumers in BRIC nations, particularly in China and India.
Thanks for your article and insights,
~ Dan Butterfield
www.iPhonAsia.com
Jul 13, 2009 05:37
RyanM says...
Hi Dan, thanks for the comprehensive comment and in depth info.
And readers interested in the mobile phone market in Asia should definitely check out Dan's blog, which I thought was only available at the (blocked in China) idannyb.wordpress.com, but can also be reached (in China) at www.iPhonAsia.com) - great posts there.
I might just grab my swim trunks and a ziplock bag and see if I can't grab me one of those 3GS's. ;)
Jul 13, 2009 14:02
Hi Dan, thanks for the comprehensive comment and in depth info.
And readers interested in the mobile phone market in Asia should definitely check out Dan's blog, which I thought was only available at the (blocked in China) idannyb.wordpress.com, but can also be reached (in China) at www.iPhonAsia.com) - great posts there.
I might just grab my swim trunks and a ziplock bag and see if I can't grab me one of those 3GS's. ;)
Jul 13, 2009 14:02
To post comments, you need to become a member. It's FREE.
Sponsored links
Multi-task with Maximum Performance
Be awed by the performance of HP Pavilion Elite High Performance Edition PC
The new Citi DIVIDEND World MasterCard
Get up to 5% cash back for every dollar charged to your card.
Win an ASUS UL Series Notebook!
Answer 3 simple questions and stand a chance to win an ASUS UL80Vt notebook worth over $1500!
Crack the code
Crack the code with Western Digital and stand to win the new PS3 (slim gaming console).
B.Sc. in Finance and Accounting Mgmt
Entry requirement: Polytechnic diploma or equivalent. Find out more.
Just right. Nothing more.
The VAIO X Series. It’s everything you desire and nothing you don’t.
Make Your Brand Sing Out!
The Music Matters Advertising Forum in association with Media, Singapore, Dec 8
Samsung Camera, Two LCDs.
Twice the fun of any camera. Dual LCD makes it easy.
CNET Asia is now on Facebook!
Be part of the most happening tech community in Asia on Facebook
CNET Asia TV
Watch gadget reviews, quick tips, movie trailers and more for FREE.
January
