China Unicom Adds Record 3G Customers Undercutting IPhone: Tech

China Unicom Hong Kong, the nation’s No. 2 carrier, is adding a record number of high-speed wireless subscribers and gaining market share by pushing smartphones that cost 80 percent less than Apple’s iPhone.

China Unicom started winning customers from market leader China Mobile after it switched focus from high-end users of the iPhone to those who can’t afford the device. China Unicom started selling handsets from local manufacturers Huawei Technologies Co. and ZTE Corp. that cost less than 1,000 yuan ($158), or about half a month’s salary for an urban worker. The strategy helped make China Unicom the best-performing stock on the benchmark Hang Seng Index last year with a 47 percent increase. It also accelerated the shift to high-speed networks in China, putting the nation on course to surpass the U.S. in smartphone users and enabling Huawei and ZTE to compete against Apple in their home market.