Iphone Second Generation

Android 3G sales take off for China Unicom

Company plans to introduce more Internet-capable smartphones

SHANGHAI - China Unicom (Hong Kong) Ltd, China's second-largest telecommunications carrier by subscribers, said more than 35 percent of its third generation (3G) smartphones sold in the first quarter were Android-based versions, indicating a declining dependence on Apple Inc's iPhone series.

The sales performance of the iPhone in China was beyond China Unicom's expectations, said Chang Xiaobing, chairman of China United Network Communications Group Co Ltd. He added that other smartphone models, some of which run on the Android platform, also performed better than expected.

The ZTE Blade V880, which was launched in June, has become China Unicom's second-most popular 3G mobile phone, after the iPhone 4. The handset has average daily sales of 4,500 units, with a one-day record of 10,000 units.

"We have seen new hope from the hot sales of the ZTE Blade," Chang said, signaling that other mobile phone models could also achieve a good market performance and bring users to China Unicom.

Chang made the remarks on Monday at the China Unicom WCDMA Terminal Industry Forum held in Shanghai. He declined to reveal specific figures about iPhone sales, citing agreements signed with Apple.

Lu Yimin, president of China Unicom, said more than 36 million WCDMA handsets were sold in China in the first five months of this year, accounting for almost 45 percent of total 3G mobile phone sales in that period.

More than 35 percent of 3G WCDMA handsets were Android-based smartphones, surging from 3 percent a year earlier, Lu said.

"China Unicom will continue launching more high-end flagship smartphone models. Meanwhile, we are about to introduce more Internet-capable smartphones priced around or below 1,000 yuan ($156)," Lu said.

"We reduced the subsidy for the iPhone 4 this year, which may allow us to provide enough money to subsidize other smartphones," said Yu Yingtao, the general manager of China Unicom's marketing and sales department.

China Unicom is still the sole carrier in China that offers Apple Inc's iPhone series with a service contract. But the company has faced increasing pressure from domestic rivals, as the other two Chinese carriers stepped up the pace of introducing iPhone services.

China Mobile Ltd, whose 3G network technology isn't supported by the iPhone, has aggressively promoted collaboration with Apple in the upcoming fourth-generation (4G) era.

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