HONG KONG: The much anticipated Apple iPhone 3Gs, which was officially launched in Hong Kong last Friday, has again left fans excited at the prospect of getting their hands on the latest version of the popular mobile device but less excited about the service package that comes with it.

Like the models in the US and Europe, the new iPhone 3Gs was bound with a service package, which may stretch as long as 24 months. The exclusive retailer for the iPhone in Hong Kong is 3, operated by Hutchison Telecommunications.

Users can get a free 16GB iPhone 3Gs on the premise that they subscribe to a HK$398 monthly plan, with a 24-month commitment. The 16GB handset will cost from HK$380 to HK$4,080 in accordance to subscription plans ranging from HK$138 to HK$298 a month.

The 32GB iPhone 3Gs is priced between HK$1,180 and HK$4,880, depending on the service plans between HK$138 and HK$398 a month, again with a two-year commitment.

3 has also slashed the price of the earlier 8GB iPhone 3G model in an effort to lower the entry barrier to attract more users to join the iPhone camp.

Hutchison Telecom said in a statement that it received over 10,000 inquiries about the new model within a day after releasing package details.

"Consumers' reaction on 3Gs is much better than last year when the 3G model was released," the company said.

Last year, customers had to pay a HK$498 monthly package under a two-year contract to get an iPhone 3G for free.

However, the binding service package could dent buyers' enthusiasm as the grey market in Hong Kong offers a more flexible option without the long-term contract.

Over 100 iPhones were sold in the two weeks before the official launch of the iPhone 3Gs in Hong Kong, said Lau Chi-kong, the manager of G World Mobile, a grey market mobile retailer in Mong Kok. The price for the 16GB iPhone 3Gs and 32GB iPhone 3Gs was HK$5,800 and HK$6,800 respectively in the grey market, which were at least HK$1,000 higher than those with service subscriptions.

But Lau said they had already slashed the prices by HK$1,000 in response to the 3Gs's official launch.

Competition from the grey market seems to be waning as local iPhone fans were lining up at 3 shops on launch day.

"The iPhone 3Gs is priced at a competitive level in Hong Kong, which would help expand its market share in the 3G market," said Alex Lee, telecom analyst at the Taifook Securities.

"Besides, the Apple online store offers non-service binding 3Gs iPhones which are less expensive than the grey imports," he said, adding that this could impose a threat to the grey market.

The analyst however reckons that the new 3Gs model would not be as popular as last year's 3G model since the improvements is not as much as that from 2G to 3G.

(HK Edition 07/14/2009 page4)