Monday, October 12, 2009
Chinese iPhone Sales “Disappointing,” Perhaps Because iPhone Not Yet on Sale in China
“Sales of iPhone through China Unicom, to state it mildly, have been disappointing. Volumes since launch have run at a fraction of stated goals.” So says Northeast Securities analyst Ashok Kumar, who, in a research note to investors this morning, warned that Chinese sales of the iconic handset are not nearly as good as expected. Which I suppose makes perfect sense because the iPhone hasn’t yet gone on sale in China.
Gartner analyst Ken Dulaney says Google’s Android OS will claim 14 percent of the global smart-phone market by 2012, putting it ahead of Apple’s iPhone but behind Symbian, which currently runs on about half of all smart phones. While this might seem optimistic, it’s not entirely unreasonable given the distribution deals Google has been lining up. Yesterday, the search giant announced a deal to bring Android-based devices to Verizon Wireless. Now comes word that Dell is building an Android handset for AT&T.
Apple will sell somewhere between five and seven million iPhones in China in 2010, according to research house Broadpoint AmTech. But that’s assuming its distribution deal with China Unicom is exclusive. And according to Apple, it’s not. “I can confirm it is not an exclusive deal,” an Apple spokesperson told Dow Jones.
With a combined share of over 20 percent of the Japanese handset market, a joint cellphone venture between NEC, Hitachi and Casio might be a wise move for the companies, which are struggling in an increasingly saturated domestic market. So reports that the three have decided to consolidate their mobile-phone operations aren’t wide of the mark at all.
If Apple hasn’t already signed a deal to bring the iPhone to China, it’s getting damn close. Sources tell Reuters that China Unicom may announce the rumored agreement as soon as tomorrow.
No wonder cellular carriers rejected Dell’s first smartphone offering for its “lack of differentiation.” Unveiled in China this morning, Dell’s “proof of concept” handset looks like the chimerical offspring of Apple’s iPhone and the Palm Pre, but lacks some of their more powerful features. 
The 3G wireless network infrastructure here in the United States may be subpar, but it keeps attracting new users. Indeed, research outfit TeleGeography reports that the number of 3G phone users in the U.S. will overtake Japan by 2011. 
If China Unicom and Apple haven’t already inked a deal to bring the iPhone to China, they’re very close to doing so. This morning, a report in Shanghai Securities News claimed the two companies had reached an agreement that grants China Unicom three years of exclusivity. 
Apple’s long-rumored tablet device may arrive at market before the winter holidays, not after them. This according to the Financial Times, which has managed to flesh out some recent reports coming out of China. According to the FT, the “full-featured” tablet is being prepped to launch alongside a next-generation digital album format Apple is cooking up with the four largest recording companies, one designed to gin up sales of CD-length music.
“We will enter Asia with the iPhone in 2008,” Apple COO Tim Cook declared in March 2008. “And we will one day enter China, we’re not saying when.” How’s September of 2009 sound? Because China Business Network claims that China Unicom and Apple have finally inked a deal that will bring the iPhone to the country around that time.
