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August 11, 2010

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Apple Stores sell out all new iPhones

APPLE'S new Wi-Fi enabled iPhone 3GS, which debuted in the domestic market on Monday, sold out in the Chinese mainland's two Apple Stores yesterday, thanks to a lower price and the long-awaited Wi-Fi function.

The new 8-gigabyte version of iPhone 3GS costs 3,999 yuan (US$588) in Apple Stores, 20 percent cheaper than those sold in the outlets of China Unicom, Apple's partner on the mainland.

"We sold out all new iPhone 3GS in the morning. Only about 20 units of the new iPhone are left after first-day sales (on Monday)," a Shanghai Apple Store employee said yesterday, declining to reveal the specific sales number.

Apple does not take online or phone orders for the new model.

The iPhone 3GS with 8GB capacity is the first Wi-Fi enabled iPhone available in the domestic market. The Wi-Fi provides smartphones with high-speed Internet access and better experience thanks to big touch screen and various online applications, experts said.

The 8GB version costs 3,999 yuan at Apple Stores, about 2,000 yuan cheaper than the former entry-level 16GB model of iPhone 3GS without Wi-Fi.

At China Unicom outlets, users pay 4,999 yuan for the new model alone without a package deal.

"We can't sell iPhone at this price (sold at Apple Stores). We don't just sell devices, we aim to sell our services, too," said a China Unicom official based in Shanghai, who declined to be identified.

Apple China declined comment on the new iPhone's price discrepancy.

To woo customers, China Unicom allows users to get a free or cheaper iPhone 3GS 8GB on a two-year contract.

Users can get a free iPhone if they pay 4,999 yuan as telecommunications fee beforehand and pledge to make calls worth more than 226 yuan a month. The other choice is to pay 2,499 yuan for the iPhone and 2,000 yuan as telecommunications fee and call for more than 96 yuan a month. The telecommunications fee, which is basically a deposit, will be returned once the contract expires after two years.

Apple debuted the iPhone in the world's biggest mobile market in 2009, through cooperation with its partner China Unicom, the country's No. 2 mobile carrier.

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