FreeRange

iPhone in China: Those Who Know Aren't Talking

One other key point regarding Apple's iTunes and Mobileme offerings which makes the business model of consumers paying for these services directly through China Unicom more likely. Not only do most Chinese consumers not have credit cards, the overwhelming majority of those that do WILL NOT use them online, thus Apple needs an alternative payment system to be successful with these offerings. Another big challenge is that even sophisticated IT professionals that use iPhones in China won't download apps to them for fear of getting a virus, thanks to their experience with Windoze. Apple has a big education problem on this front.

Apple Seems Desperate to Enter Chinese Handset Market

There are tremendous opportunities for Apple across the board in China. I have been coming here for 10 years and just recently moved to Beijing from the US. There are iPhones all over the place here (and no, not counterfeit ones) and Apple doesn't even sell them in China - it is estimated around 1 million currently. This is without any promotion or distribution. Further, the halo effect for the mac, as the official iPhone launch happens, will be tremendous. With only one corporate Apple store in China, their is indeed significant room for growth. Their is a huge Chinese middle class now that clamors for high quality name brand products - a good example is the incredible number of Audis, Mercedes and BMWs on the road here. Truly eye opening. Go Apple!