China Unicom which is the nation’s second largest wireless network recently announced that they are going to launch the iPhone 4S in the country on the 13th of this month. They already have announced their plans on how they are going to sell Apple’s fifth generation handset.
China Unicom, the only one of the nation’s three carriers is going to offer the iPhone with an amazing promotional technique. Free iPhones will be handed over to the iPhone fans that are going to sign a multi-year deal with the company at as low as 286 Yuan per month. Committing to a two year contract the fans will get the 16 Gb model, on the other hand committing to a three year contract, the 32 Gb model will be handed over to the people, Both for free. This was announced by the company on its website a few days back.
The free iPhone 4S will be made available to the customers at a monthly plan of 286 Yuan which makes $45. Now if the customers sign a two year contract they will have to pay the company $1080 over the time period of the contract. The iPhone 4S costs around $650 so simplifying it all the carrier is still going to make $400 per “free” handset. Assuming that the customers continue paying their bills.
According to the analysts, this promotion is going to add more strain to the already struggling company in China. The effects of this promotion will be seen after the launch.