CHINA Unicom will launch Uphone, its self-branded smartphone, to target entry-level users by the end of this year after arch rival China Mobile announced on Monday that it has purchased 6 million basic 3G phones.

The Uphones are made by home-grown makers including Huawei Technologies and ZTE Corp. The telco didn't reveal Uphone's pricing yesterday.

China Unicom, Apple's partner carrier in the mainland, is expected to purchase "several million" Uphones to attract users in smaller cities and rural areas, a ZTE official, who declined to be named, told Shanghai Daily.

"It's a natural reaction (for Unicom) after China Mobile's purchase decision," he said.

On Monday China Mobile, which has launched its self-branded Ophones, said it had bought over 6 million basic 3G phones costing less than 1,000 yuan (US$149) each from firms like ZTE and Lenovo.

China Unicom, the only telco authorized to sell Apple's iPhone in the mainland, will continue to sell the handset in the high-end sector, the country's No. 2 telco said.