Disappointing iPhone China launch

The official launch of Apple's iPhone in China has been disappointing at best for mobile operator China Unicom, with the grey market still booming and competitors offering worthy alternatives, experts say.

Unicom unveiled Apple's iconic handset in Beijing, but the few hundred people who braved the cold wind and rain to snap up the iPhone paled in comparison to hordes seen in New York in 2007 or Tokyo and Hong Kong last year.

Vendors and experts say the high price, disabled WiFi and wide range of other options has so far dogged sales in the world's biggest cell phone market of nearly 720 million users.

Unicom said last week that it had sold 5,000 units in the first weekend, but has released no figures since.

"The market was obviously expecting more, based on what happened with the debut of iPhone" in other countries, said Bertram Lai, a Hong Kong-based analyst with CIMB-GK Securities.

"The introduction of a more expensive, less usable iPhone with fewer functions is not going to be very exciting for the market." Unicom, the country's second-largest mobile operator by subscribers, is offering a number of contract deals that bring the price of the iPhone down - but it still costs more than $500, out of range for most consumers.

Without a subscription, the handset can cost up to $1,000.