China Mobile Chairman Wang Jianzhou told Reuters that its wireless network is home to over ten million iPhones. This number is a very small part of China Mobile's 600 million subscribers, but it's surprisingly high for a carrier that does not currently sell any model of the iPhone. These iPhones on China Mobile are either purchased directly from China's five Apple stores, converts from China Unicom which does carry the iPhone 4 or are iPhones obtained on the black market. It's well known that many iPhones being sold in China are smuggled in from foreign countries and sold to customers in open air markets.
This illicit market may face some competition