China Telecom

Update: Apple confirmed the use of China Telecom servers in a statement to the Wall Street Journal.

But the company said Friday in a statement to The Wall Street Journal that all data stored is encrypted, meaning China Telecom won’t have access to its content.

“Apple takes user security and privacy very seriously. We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland China,” it said.

Apple has begun using Chinese data centers to store iCloud data for local Apple customers, the first time Apple has used mainland China for iCloud account and information storage. On a municipal government website, Fuzhuo City Telecom said that ‘Apple China has completed the iCloud data dump into China Telecom’s cloud services’. The post has since been taken down from the government site, however.

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Image: thenextweb.com

Analysts say that the official launch of the iPhone on China Mobile could lead to subsidy wars as Chinese carriers compete to attract buyers. The predictions, quoted by Business Insider, follow price cuts by rival carriers China Unicom and China Telecom as China Mobile reports 1.2 million pre-orders.

China Mobile is currently offering the iPhone 5s free with a 24-month contract costing the equivalent of $98 a month. A 30-month contract on China Unicom costs $63 a month.

I do think you’re going to see a subsidy war coming,” said Michael Clendenin, managing director of Shanghai-based RedTech Advisors. “China Mobile, if they’re not making their targets on sales for these phones, they’re going to increase the subsidies […] It’s like airlines: the other guys will fall like dominoes, so China Unicom will do it and China Telecom will do it” … 
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In a rare TV interview, Tim Cook described this week’s launch of the iPhone on China Mobile as “a watershed day” for the company. While the soft-spoken Apple CEO is noted for the humbleness with which he speaks, it’s hard to imagine him describing Apple as being “honored” to do business with many other companies.

I’m so honored to be doing business with … China Mobile. It’s a huge announcement…we’re incredibly impressed with them, we have deep respect for them, and have had from the very first discussion that we’ve had together” … 
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“Gold” iPhone 5S backplate

China Telecom, one of the carriers in China to carry Apple’s iPhone, posted a message on microblogging website Weibo indicating that it will soon carry both of Apple’s upcoming iPhones: the iPhone 5S and iPhone 5C. The message has since been deleted.

With Apple holding a satellite stream of the September 10th media event in China, it is already likely that the country will see a promoted launch of both of the new iPhones. However, the information from China Telecom seems to indicate that the launch will occur early in Apple’s new iPhone release cycle. With past iPhone launches, Apple saved the China debut for weeks or months after the device’s first hit countries like the United States, Germany, and Australia.

A post on Sina indicates a September 20th launch, a date forecasted by some reports.

Perhaps corroborating a launch soon after the unveiling, major China-based retailer Dixintong is said to begin carrying the new iPhones on September 25th. It’s unclear if this is a general launch date for China, or just the date that this specific retailer has chosen.

In addition to seeing the device early-on in the release plan, recent chatter seems to indicate that China Mobile, the largest mobile carrier in the country, will gain the iPhone with the launches of the iPhone 5S and iPhone 5C. The lower-cost, plastic backed iPhone 5C seems to have been developed with markets such as China in mind…

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January File Photo

According to a local Chinese report, Apple CEO Tim Cook was recently back in China hoping to jumpstart relations with Chinese carriers this week. Cook met with China Telecom, already a strong Apple partner. The topic of conversation wasn’t revealed but likely on the plate is Apple’s lower cost plastic iPhone, perhaps called the iPhone 5C, and overall flattening growth in Apple’s second biggest market.

Apple CEO Tim Cook in China, visited with China Telecom, possibly to talk about declining iPhone sales, say local reports.

— Michael Kan (@Michael_Kan) July 30, 2013

The article speculates that he probably met with the other local carriers including partner China Unicom and the world’s biggest carrier, China Mobile who has around 700M subscribers – none of which have direct access to Apple’s iPhone yet.

It is Cook’s third known trip to China since he took over as CEO almost two years ago. Other things that may come up include Pegatron’s supposed worker violation issues and perhaps even another Beijing scalping problem.

Rough translation below:
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image via M.I.C. Gadget

Sina Tech reports that CDMA iPhone 4S’s are being snapped up by its 130 million mobile subscribers today after the No. 2 player in the world’s largest mobile market recieved 200,000 pre-orders (and counting) starting last week.

We previously noted that the iPhone 4S on China Telecom would be available in every configuration: 16GB, 32GB, and 64GB. The phone will start at “free” with a contract. China Telecom received its license to sell the iPhone in January. China Telecom officially announced it would begin selling the iPhone 4S last month.

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Last week we told you about a new online lottery system for reservations that Apple setup for iPhone 4S sales through its Hong Kong stores to combat scalpers after it was forced to suspend sales of the device in various locations throughout Mainland China. Unfortunately, until this week, Apple’s online store for China has been out of stock since the overwhelming launch.

After implementing the new reservation policies on Tuesday, and in Beijing on Wednesday, Apple has now resumed online sales of the device with shipments arriving to customers no later than March 2, reported ChinaDaily. Apple’s online store for Mainland China now lists the iPhone 4S with an expected delivery time of “February.” Customers are limited to two devices with all three models currently available in both black and white. An Apple employee confirmed the March 2 date to ChinaDaily:

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Earlier this month, we reported that China Telecom earned the necessary approvals to launch the iPhone 4S on China’s third-largest carrier. Today, the China Telecom subsidiary Beijing Telecom issued a press release (via China Daily) and said the Beijing-based company will launch the iPhone 4S as early as the end of February or beginning of March.

A CDMA version of the iPhone 4S will launch on the network. The press release gave no word on pricing for the device, but it will likely fall in line with the other networks.

China Telecom currently boasts 36.3 million 3G subscribers, while in comparison the nation’s largest carrier China Mobile Ltd., boasts 51.2 million 3G subscribers. Obviously, the launch of the iPhone 4S brings a lot of excitement in China, and it gives Apple the chance to add new customers. Moreover, launching on China Mobile would add an abundance of new customers, but that does not look to be happening anytime soon.

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Fans in China eager to get their hands on Apple’s iPhone through wireless operators other than China Unicom, the country’s exclusive iPhone partner, are in for a surprise as the device is really close to launching on the China Telecom network. According to the Wall Street Journal, it received a much-needed CDMA-2000 network access license from Telecommunication Equipment Certification Center, the country’s certification body. This means China Telecom could now be just weeks away from officially selling the iPhone:

An iPhone compatible with the mobile network of China’ third-largest mobile carrier, China Telecom, has received a network access license, a regulatory website shows, marking a key step toward Apple being able to sell the phone to a broader audience in China.

Last week, Apple’s iPhone got an approval from China Radio Management agency for use on China Telecom’s network. That agency certified an iPhone version with a model number A1387a that supports “WCDMA,” indicating Apple could release a phone that supports both China Unicom’s and China Telecom’s networks. Nevertheless, China Telecom, which expressed interest to offer the iPhone on numerous occasions in the past, looks like it will finally land the sought-after device.

Widening the iPhone’s distribution footprint in China, a key growth market for Apple at a time when the company is increasing sales of its mobile devices around the world, is bound to positively affect the bottom line. China is now the world’s leading smartphone market. Revenue from the country contributed with 12 percent in the more than $108 billion of Apple’s fiscal 2011 revenue, up from just $3 billion in 2009.

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[slideshow]

     The gallery above via Flickr user Liz Phung shows more shots from the launch in Beijing. There are also two images of  employees receiving their first shipments at China Unicom in Wuxi, east China’s Jiangsu Province (via xinhuanet). 

It is just over 8 hours before the iPhone 4S officially lands in China and huge lines already starting to form outside of Apple Stores in Beijing and Shanghai. The image below is from Instagram user Sanverde who noted he snapped the shot outside an Apple Store in Sanlitun Village, Beijing less than an hour ago. As you can see from the daytime image in the slideshow above (posted by Twitter user Alexander Galimberti on Jan. 10), Beijing line sitters started showing up for tonight’s launch days in advance. To the right is an image from Instagram user sainasilverman who says 400,000 units of the iPhone 4S have now arrived in Beijing.

China Unicom, the only carrier currently offering the iPhone 4S, does not currently accept pre-orders, but it will be offering the 16GB and 32GB models free on two- and three-year agreements. China Telecom, the nation’s third largest mobile carrier, is also expected to offer the iPhone in the future. The device recently received necessary approval from the China Radio Management agency for use on its CDMA network.

Check out the most recent shot of the lines outside the Sanlitun Village, Beijing Apple Store after the break and some more shots of gray market line sitters wearing red hats. According to MIC Gadget, those wearing a red cap have been paid 100 yuan ($16) to line up for the 12+ hour wait. We will be updating with more shots, so email your photographs of the lines to us at tips@9to5mac.com. 
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