China Unicom, the second largest provider in China is offering Free iPhone 4S on multiyear contract. Customers can get 16 GB model for 386 yuan per month (about $61) and 32 GB iPhone 4S on a three-year contract for as little as 286 yuan (about US$45) per month.
Several industry analysts are not positive by that move from China Unicom.
Steven Liu of Standard Chartered Bank noted in a Bloomberg article that
“After subsidizing the iPhone, the operator will have less money for subsidizing other smartphone users that could be more profitable.”
3G phone subsidies cost China Unicom 6 billion yuan in the first half of 2011 four times more than in 2010. iPhone 4S is a powerful smartphone and customers will sure prefer it to buy than other lower end less capable phones.
