China Unicom, the potential exclusive distributor of iPhones in China, has poured 10 billion yuan ($1.46 billion) to buy 5 million units from Apple, ready to sell the first batch in September, local media reported on Wednesday.
China Unicom had already paid Apple 10 billion yuan ($1.46 billion) for 5 million WCDMA standard iPhones with unit price of 2,000 yuan ($293), CBN news said, citing a well-informed source.
The report also points out that Apple will not be continuing with their traditional ways for making a profit. Instead of sharing the profits with their wireless carrier (AT&T in the U.S.), Apple is now bringing income specifically from selling units to Unicom.
Apple made compromises in the China market because of its great demand and intense competition, but Apple can still make profits from each unit from 1,000 yuan and 1,100 yuan as China Unicom offers a good price for each unit.
The iPhone will likely be priced at 2,400 yuan ($351) for the 8GB model and possibly 4,800 yuan ($702) for the 16GB model.