Is Apple Losing Ground in China?

Without question, Apple has had its eye on China and the broader Asian market for a considerable period of time now.

But is China as willing to embrace Apple as Apple is eager to fill the world’s most populous mobile community with iPhones and iPads?

On Friday, the rumor mill indicated that China Unicom, China’s only WCDMA carrier, may discontinue contract sales of the popular smartphone.

In September 2010, China Unicom rolled two-year contract-bundles of the iPhone 4. With these contracts set to expire in the coming weeks, rumor has it that China Unicom may not offer an opportunity to extend these contracts.

According to a report in DigiTimes Friday, China Unicom “has not substantially profited from sales of iPhone 4 and has incurred a heavy financial burden from subsidies.”

Should China Unicon no longer offer the iPhone on contract, the blow could be devastating to Apple and the company’s blossoming interest in the emerging markets of Asia.