China Economic Review
Charting China’s changing economic terrain · Since 1990

Shady iPhone 4 sales

November 22, 2010

China Unicom wants to end rogue sales of its bundled iPhone 4 packages.
The company found online deals where consumers purchase iPhone 4 services and then sell off the parts – the phone and the two-year service subscription – separately for a profit.
The iPhone 4, offered at a reduced rate through China Unicom on a two-year mobile subscription contract, includes a monthly rebate from the company if call limits are met.
A key word search on taobao.com revealed 428 search results offering "Iphone 4 service package" for sale. Customers purchased their iPhone 4s from outlets other than China Unicom and other smartphone owners that support 3G services.
The iPhone 4 is currently one of the top-selling smartphones on the market and is in short supply.
Global Times reports that in addition to China Unicom’s bundled iPhone 4 sales and Apple store sales, phones can also be obtained from the more expensive gray market.

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