As Apple continues to negotiation with China Unicom, an anonymous source has told NetEase that Foxconn is already mass producing a special version of the iPhone 3G for use on Chinese networks. The device is allegedly code-named "90" by the supplier, while the standard 3G model is known as "82" and the new 3GS handset is named "88."

The device has retained 3G and Bluetooth connectivity, while the Wi-Fi standard was allegedly omitted to comply with local government regulations. A report early in the year suggested China Unicom also saw the App Store as a threat to its control of the mobile Internet, although the terms of a resolution remain unknown.

The source claims the Chinese iPhone is currently at the Ministry of Industry and Information Technology for laboratory testing. Apple is expected to finalize a deal with China Unicom sometime in the next few weeks. Several analysts, however, believe Apple may also be involved in talks with the alternative carrier in the region, China Mobile.