A report published in the Wall Street Journal indicates China Unicom is now negotiating with Apple to release an iPhone with Wi-Fi capabilities in China.
China currently prohibits any phone from providing wireless support unless it's used on the WAPI (Wired Authentication and Privacy Infrastructure) supported by the Chinese government. An adjustment in laws now allows phone manufacturers to offer Wi-Fi phones as long as they also have WAPI support.
China Unicom remains the only carrier to offer the iPhone in China, but China Mobile has stated that they want to offer the popular smartphone as well. In the United States AT&T has exclusive rights to the iPhone, but Verizon Wireless is also interested in carrying the Apple phone. Several wireless carriers in the United Kingdom carry the iPhone, with varying levels of success for each company.
The addition of Wi-Fi to the iPhone should help offer a temporary sales boost, but the company still has another major problem it must deal with.
Chinese officials hope China Unicom makes the iPhone available for a lower price, as the retail price is routinely undercut by cheap in-country knockoff phones. Just 5,000 iPhones were sold opening weekend in China, and Apple anticipates selling 460,000 iPhones per year in the People's Republic.
Until a price drop occurs, the iPhone is available in China for $730 - $1,020, causing all but the most wealthy consumers to shun the device.
China Unicom doesn't plan to rely solely on the iPhone, and announced it will offer Google Android-powered phones as well. Google and China still aren't in agreement quite yet -- but once the American company and government strike a deal, if ever -- China Unicom will launch Android smartphones.
