Dec 27, 2010 18:31 GMT  ·  By

China Unicom is the official retailer for Apple's iPhone in China and is currently selling the 3GS model for 4,999 yuan (about $730) with a two year contract. However, one of the carrier's officials who refused to reveal his identity, stated that the iPhone 3GS 8GB version might be available from China Unicom for only 3,999 without a subscription.

Currently, China Unicom only sells Apple's iPhone 3GS bundled with mobile service contracts and hasn't disclosed any information regarding the possibility of offering the device without a subscription.

Still, China Unicom is one of the major Chinese carriers that reported important financial losses at the end of Q2. Apparently, the carrier didn't manage to attract as many buyers for the iPhone, as it was expected.

The main reasons being the high price of the iPhone 3GS at launch, as well as the lack of Wi-Fi connectivity, the Chinese government regulations banned the standard in favor of a native one called WAPI (WLAN Authentication and Privacy Infrastructure).

Even though these regulations were relaxed in May 2010 and China Unicom received new stocks of the iPhone 3GS with Wi-Fi capabilities in August, the price of the device remained the same, which continued to slow the smartphone's sales.

Chinese customers pay for a smartphone an average of $350, which puts Apple in a delicate position as the main iPhone retailer sells its smartphone for almost double the average price.

Ironically, China Unicom's offer is on par with Apple's official stores from China, which sell the iPhone 3GS 8GB for about the same price, $600 USD.

Asked if the iPhone 4, another Apple product sold by China Unicom, is to receive the same treatment and will be sold without contract, the carrier spokesman refused to comment. Instead he added that Apple's iPhone 4 is still in short supply.

China, with over 1 billion people is the largest cell phone market in the world and one that Apple is trying to conquer, despite an unexpected number of setbacks.