iPhone 3 in Santa's sleigh
0 
China Unicom, Apple's Chinese partner, plans to offer discounts for the last-gener-ation iPhone 3GS, as it tries to bolster sales despite the iPhone 4 craze.
China Unicom will start the promotion nationwide on Christmas Day, Wen Baoqiu, spokesman for the telecom carrier, told the Global Times Thursday.
The price of the unbundled 8-gigabyte iPhone 3GS will be cut from 4,999 yuan ($751.90) to 3,999 yuan ($601.49), according to China Unicom customer service in Beijing. A two-year contract bundle remains at 4,999 yuan. Currently, only the 8-gigabyte version will enjoy these discounts.
Analysts said the move is aimed at offloading remaining iPhone 3GS stock, as the new iPhone 4 grabs all the attention. Remaining iPhone 3GS stock numbers some 200,000 units, according to reports but Wen declined to confirm the figure.
The Wi-Fi capable model of IPhone 3GS suffered from bad timing as it launched in August, only a month before the iPhone 4 hit stores.
Compared to the sluggish sales of iPhone 3GS, demand for iPhone 4 is outpacing its supply. Sales currently stand at around 10,000 phones a day, with total sales above 1 million, Yu Yingtao, general sales manager of China Unicom, was quoted by ifeng.com as saying Wednesday. Yu added that there was still no solution to address the phone's short supply.
Analysts pointed out that the hot sales of the iPhone 4 would boost China Unicom's 3G subscriber growth, thus heaving pressure on China Mobile, the country's largest telecom operator.
"China Mobile remains secure in its dominant market position in terms of total subscribers, but its share of 3G subscribers is eroding," Shen said.
China Mobile's 3G subscribers increased by 1.85 million in November, ticking down from 1.86 million in September, while China Unicom's new 3G subscribers rose to 1.12 million in November from 1.04 million in September, according to their operation figures released each month.
"China Unicom has already gained a foothold in the high-end 3G handset market, with the help of iPhone 4 sales," said Ji Chendong, a consultant with research firm Frost & Sullivan in Shanghai.
Analysts believe the launch of 3G iPads will further fuel China Unicom's growth, but Wen pointed out that no timeframe had been set for the sale of 3G-capable iPads in China.
China Unicom also plans to nab a larger share of the market for low-end 3G subscribers. The operator will launch entry-level 3G handsets priced at below 800 yuan ($120.33) next year, a company official said, according to ifeng.com.
