Apple Launches iPhone In China Amidst Several Challenges

Close to two and a half years after the iPhone made its launch in the US, Apple has finally launched its smartphone in China, the World's largest telecom market. 

Apple has finally launched the iPhone in partnership with local carrier China Unicom. 

There are several challenges that Apple has to face in the Chinese market. First and foremost is the fact that the Chinese iPhone comes without Wi-Fi at an expensive $1,025 for a 32GB iPhone 3GS. This is much higher than the iPhones available in the Chinese gray markets for a cheaper $830, and that is with Wi-Fi. 

So why is the iPhone launching so late and with lesser features? It is believed Apple had been in long drawn negotiations with the Chinese network carriers over revenue sharing agreements which had caused the delay. Also, until May of this year, the Chinese government had banned the use of Wi-Fi enabled devices in favor of another Wireless LAN standard called WAPI. The ban has been lifted since then, however, with the manufacturing of iPhones for the Chinese market having already begun, Apple had decided to go ahead with an iPhone without Wi-Fi. 

A superior gray market iPhone is not the only challenge that Apple faces. China Mobile, the largest telecom company in China with more than 508 million customers is believed to be launching their own smartphone called the OPhone by 2010. The Chinese market has constantly favored local brands over foreign competitions and this could mean that the OPhone could pose a serious threat. Also, unlocked iPhone 3GS from nearby Hong Kong can be procured for just over $800, and that could as well be a potential threat to Apple's carrier partner. 

We had earlier written about China Unicom having procured 5 million iPhone units from Apple for this launch. Will the company be able to sell them all amidst these numerous challenges, we can only wait and watch. What do you think?

[via Associated Press]

Follow us on Twitter