According to a BusinessWeek article yesterday, iPhones are not selling well in India which can be an indicator that they won't do well in China either.
Apple's iPhones have been sold in India since last August but sales have been very low given the 20 million new customers that Indian cell-phone providers add each month. The price may be a consideration as the iPhone is 1/3 the amount as the new Indian-made car, Nana costs. At $700 each (price is determine by local partners, not Apple) it is expensive compared to $199/mo with a 2 year contract in the U.S.
The article also mentions the slowing global economny as a factor and that the iPhones can be unlocked and used on competing networks.
http://www.businessweek.com/globalbiz/content/apr2009/gb2009041_266236.htm?chan=top+news_top+news+index+-+temp_global+business
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