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iPO Reports

Apple: We’d Like to be in China with iPhone in 2010

Apple hopes to have the iPhone in the Chinese market sometimes in 2010, though the company remains mum on the details. The comments came from Apple COO Tim Cook in Wednesday's quarterly conference call with analysts.

Mr. Cook told analysts that his company was delighted to have gotten the iPhone into Russia, Brazil, and India, and that the company has some 8,000 store fronts in those three countries selling the device. China remains the world's largest market, however, where the country's biggest mobile carrier, China Mobile, has more customers than the U.S. has citizens.

"We're putting a lot of energy in growing [the iPhone in those three markets]," Mr. Cook said when an analyst asked about Chine. "China, we're not in yet -- we would like to be in China within the next year and are clearly working on that. But I've got nothing specific to announce today on it."

The Chinese market has been tough for Apple as carriers in the country refused to do a revenue-sharing agreement like Apple worked with AT&T and early European carriers. The Chinese market also doesn't have an established business model of carriers offering substantial subsidies on their phones, which is the model Apple currently uses for its iPhone.

For each iPhone activated with AT&T, for instance, Ma Bell reportedly pays Cupertino about US$400 in subsidies. AT&T then earns that money back over the lifetime of the two-year contract the company requires for iPhones. The Chinese market, however, is dominated by substantially cheaper phones, which is likely part of why Apple has found it difficult to strike a deal the company likes.

1 comments from the community.

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Greg Lawhorn said:

Is it too much to ask for the iPhone to be in northeastern Nebraska before China?

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