Unlocked iPhones Sell Well in China

Wired has a fascinating article on the iPhone's popularity in China.

"Despite rampant rumors of a deal between Apple and China's largest cellphone carrier, no one knows when the iPhone is supposed to hit China officially. But that hasn't stopped Apple's popular smartphone, known in China as "Ai Feng" ("Love Craze"), from becoming a bona fide black-market hit."

Chinese cell phone carriers do not have to sign a deal with Apple to make money from the phone. Instead of giving a portion to Apple, China carriers get all the money from wireless plans. This makes the reasoning behind Apple's limit of 2 handsets per person policy a little more clearer.

This also sheds on a light on the importance of Apple's retail stores. The retail store's customer's service is one of the few ways that Apple can give its customers a superior experience over purchasing the iPhone off the black market and using it on an unauthorized carrier. Basic history of iPhone hacking shows that any update to the iPhone will be hacked and offered to jailbreakers, so that is not something which is keeping customers in Apple's walled garden.

Another positive for those hoping for an Apple-China Mobile deal is that unlocked iPhones offer a poor text messaging experience for Chinese language users. It involves switching between Apple's SMS app to a third-party app. Text messaging is of huge importance in China.