China Unicom Increases Subsidy For iPhone (CHU, AAPL)

China Unicom Ltd. CHU has announced it is going to raise its subsidy for iPhone AAPL and other smartphones. Unicom Executive Director Lu Yimin said that the company plans to spend $439 million to $732 million on subsidies this year. The Wall Street Journal has reported that this amount includes an earlier announced cut in upfront payments for all iPhone (AAPL) models by about $146. iPhones in China now cost between $732 and $1,025. The company executive director declined to disclose the exact number of iPhones sold so far. China Unicom (CHU) commands a 26.7% share in Chinese 3G markets. The company hopes to compensate for the loss of voice services revenue through increase in data service usage.