China Unicom (Hong Kong) Ltd. (CHU) said Tuesday that Chinese customers who select the most expensive service plans under a two-year contract can receive the Apple Inc. (AAPL) iPhone for free.
Customers who sign up for the priciest monthly plan, at CNY886 per month ($ 130) for two years, will get the top-end 32-gigabyte iPhone 3Gs for free, as opposed to the retail price of around CNY5,000, ($732) the company said.
However, under that plan, customers must be willing to pre-pay their monthly bills by putting down a hefty deposit of CNY7,999 ($1,170).
By contrast, the equivalent phone in the U.S. sells for $299, with a two-year service plan that ranges from around $45 to $120 a month, including text messaging.
Thus the total cost of ownership over a two-year period for a top-end iPhone will be similar in China and the U.S. The priciest plan in the U.S. offers unlimited calls and texting, while the top-end plan from China Unicom still limits calls and messages, albeit at a generous 3,000 minutes per month for calls.
Source:Dow Jones