Almost as many devices bought on the grey market as bought legitimately

iPhone fails to sell in China

The iPhone has fallen far short of its sales targets in China, despite an expensive marketing campaign run by its Chinese distributor.

According to the Inquirer, Apple hurt its chances to dominate the Chinese market when it failed negotiate a distribution deal with China Mobile, which went on to grow its profits by 6.8 per cent through sales of Android-based phones.

In addition to this, the only company that did take on the iPhone – China Unicom – spent a large amount of money on marketing, only to see around 40 per cent of iPhone sales go through the grey market, where the devices are cheaper and unlocked.

As a result, China Unicom reported a profit fall of 54 per cent for the second quarter, with gross revenue of just $205 million.

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