Report: China iPhone Carrier May Slash Price

In a move to boost iPhone sales, carrier China Unicom may reduce the price of Apple’s handset by $150, or 1,000 yuan. Apple executives recently announced iPhone sales increased 200 percent in the first half of 2009, earning the Cupertino, Calif. company $1.3 billion.

When the iPhone first entered the Chinese market in 2009, it carried a hefty price tag of 6,999 yuan. Although initially slow to compete against a strong black market and inexpensive pre-paid handsets, more than 100,000 iPhones were sold by late last year, reports said.

Shanghai-based China Business News, citing an anonymous source, reported the possible price drop, the latest attempt by China Unicom to spur interest in the iPhone.

When the iPhone first entered the giant China market, the government banned the use of Wi-Fi, causing Apple to rely on carriers’ 3G networks. To encourage use of its 3G network, China Unicom cut rates for customers using 3G handsets. In March, China Unicom’s chief executive said Wi-Fi would soon be available.

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[AppleInsider and BusinessWeek]

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