Unlocked iPhone is popular in China

The largest chinese mobile network operator China Mobile has confirmed over 400,000 Apple iPhones are being used on its network. This makes up more than 10% of the 3.7 million Apple iPhones sold last year.
This is mixed news for Apple as it has revenue sharing agreements in place with official partners such as AT&T in the US and O2 in the UK, which it is not benefitting from in China, but Apple are obviously able to make a profit on every iPhone sold.
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