Hutchison gets head start with iPhone deal

Hong Kong's long wait for the iPhone is nearing an end after Hutchison Telecommunications (Hong Kong) sealed a deal with Apple Inc to market the handset in the city and Mac
as soon as the next quarter.

Until now, Hongkongers have only been able to buy the iPhone through unofficial channels, often in the form of parallel imports.

In a short statement issued yesterday, Hutchison Telecom did not specify whether it would launch the 2G or 3G model.

"Due to the confidential agreement with Apple, we can't say too much beyond the formal announcement," a Hutchison Telecom spokesman said.

Market sources said other mobile service operators, including CSL New World Mobility, the largest mobile operator in the city with more than 2.5 million subscribers, and PCCW Mobile, the mobile unit controlled by hi-tech tycoon Richard Li Tzar-kai, would announce a similar partnership with Apple to launch the 3G iPhone shortly.

"There are lots of 3G iPhone handsets coming to Hong Kong in the near term, so getting the first deal is not particularly attractive," a rival said.

Some handset retailers in Mong Kok are selling unlocked iPhones - which can be used with service providers other than the Apple-authorised one - for about HK$4,500.

Hutchison Telecom's existing subscribers are expected to be the first batch of users of the iPhone locally in an early-bird programme starting this summer.

"The deal with Apple regarding the launch of iPhone is not as tough as previously anticipated," said a source, explaining that revenue sharing - which marketers baulk at - would no longer apply. "[Apple] has changed its business model to boost iPhone sales in various markets."

Apple has so far struck exclusive deals for the iPhone with AT&T in the Unites States, O2 in England, T-Mobile in Germany and Orange in France. It has sold 5.4 million units worldwide.

Apple also hopes to tap the mainland mobile market, the largest in the world, although sources said talks with China Mobile had collapsed.