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Apple makes concessions to get iPhone into China and Hong Kong

By CAROLINE GABRIEL

Published: 29 September, 2008

READ MORE: Apple | iPhone

Apple has made significant concessions to the original iPhone business model as the product has matured. With the launch of the 3G version, it notably allowed more than one carrier, in some territories, to carry the handset; reduced pricing considerably; and opened up more flexible deals to some cellcos that had steered clear of the stringent conditions of the AT&T agreement. Now it has broken another mantra of the original iPhone, by making an officially unlocked version available in Hong Kong.

Although unofficially unlocked iPhones, which can then be used on any network by inserting a SIM card, are widely available, this is the first sanctioned by Apple. It has insisted on sticking to a locked model in order to protect the markets of its carrier partners, and therefore the demanding terms and revenue shares that it gains from them.

Like most open access devices of any consumer appeal, freedom comes at a high cost. The 8Gb iPhone 3G costs HK$5,400 (about $700) and the 16Gb version costs HK$6,200 (about $800). The deal will no doubt attract some takers among the mobile savvy and wealthy communities of Hong Kong, and may prove a model for some other territories where Apple has not signed a carrier.

Over the water in mainland China, China Mobile is expected to launch the iPhone soon, though it will have its 3G and Wi-Fi functionality disable and will have to rely on the cellco's GSM network.

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