Apple, which announced the 3G iPhone yesterday (Beijing time), will probably launch its iPhone in the Chinese mainland by the end of this year, according to Chief Executive Steve Jobs.

"I think you'll see those later (in China and Russia) this year," Jobs said during a CNBC interview.

Apple and China Mobile are reported to be in talks to introduce the iPhone to China, the world's biggest mobile phone market.

Apple China's spokeswoman Yuna Huang and China Mobile's spokesman Gao Songge, declined to comment on the issue yesterday.

Apple will launch the 3G iPhone in Hong Kong and Macau on July 11, Huang said.

Apple will launch the 2G iPhone in the Chinese mainland, where the unlocked iPhone is already being sold in the underground market, because the 3G networks won't be ready in time, according to Sandy Shen, Gartner Inc's analyst based in Shanghai.

China has announced plans for the telecommunications industry reorganization and the country will issue 3G licenses after the completion of the reorganization, which is expected to take a year.

"The iPhone, with strong Internet browser and multimedia functions, will make users spend more on data services and bring carriers considerable income," Shen said yesterday.

China Mobile has begun commercial tests based on TD-SCDMA (time division-synchronous code division multiple access), its home-grown 3G technology.

TD-SCDMA, however, is not compatible with the 3G iPhone, according to Shen.

A shuihuo, or smuggled phone distributor, with a store near the Shanghai Railway Station, said the new iPhone would be unlocked within a week after its launch in overseas markets.

"It will be popular because of its new GPS function and the attractive retail price of US$199," said the distributor, who declined to be identified.

(Shanghai Daily June 11, 2008)