iLounge

Apple and China Unicom have reached a preliminary agreement for exclusive sales of the iPhone in mainland china, according to a Reuters report. Shanghai Securities News originally reported that a deal had been made, however, China Unicom spokeswoman Sophia Tso quickly released a statement stating that “[d]iscussions are still ongoing, we have not reached any formal agreement.” The original Shanghai Securities report also said that the deal did not include a revenue sharing arrangement—something that was believed to be a sticking point in Apple’s negotiations with Chinese carriers—and that under the agreement, China Unicom will purchase the devices from Apple for 3,000 yuan (roughly $440) each, and will guarantee annual sales of 1-2 million units and at least 5 billion yuan ($732 million) in annual revenue. During Apple’s recent Q3 financial results conference call, Apple executives had little to say on the subject of the iPhone in China, beyond reiterating that it continues to be a priority and they hope to have the device available there within a year.