UPDATE: China Unicom: IPhone 4 Supply Currently Short Of Meeting Demand

China Unicom (Hong Kong) Ltd. (CHU, 0762.HK) said Sunday its supply of Apple Inc.'s (AAPL) iPhone 4 handsets is currently insufficient to meet user demand but that it will boost its stock as quickly as possible, as sales began at a much faster pace than when the network operator first launched older versions of the iPhone last year.

China Unicom had taken over 200,000 iPhone 4 pre-orders by early Saturday, the day sales started, and over 40,000 buyers received the phone and a bundled mobile service plan that day, the company said in a statement. For comparison, China Unicom last year said it sold 100,000 iPhone handsets in roughly six weeks after launching the devices in late October.

The latest version of Apple's popular smartphone was widely awaited in China and could help China Unicom attract more users to its third-generation mobile services, which are more expensive but offer faster data speeds. China Unicom is competing with rivals China Mobile Ltd. (CHL, 0941.HK) and China Telecom Corp. (CHA, 0728.HK) to build its 3G subscriber base.

Apple spokeswoman Carolyn Wu said: "More iPhones will be available soon and customers should check back with their local store or online for updates on availability."

The faster start to sales at China Unicom comes as Apple has started shortening the time it takes to launch its devices in China after their debut in other countries, and as Apple looks to boost product sales and promote its brand by opening more of its own retail stores in China. The iPhone 4 went on sale in China about three months after its launch in the U.S. and several other countries in late June.

Unicom did not give details on its stock of the iPhone 4, but network operators elsewhere have also faced tight supply of the phone. Telstra Corp.'s (TLSYY, TLS.AU) Hong Kong unit, CSL Ltd., said in August it was facing challenges delivering the iPhone 4 due to overwhelmingly high demand. In the U.S., high demand for the iPhone 4 in late June led operator AT&T Inc. (T) to stop taking new orders on the first day of preorders, citing processing problems. In a statement at the time, Apple Chief Executive Steve Jobs said the company apologized to customers who were turned away due to insufficient supply.

As of the second quarter, Apple was the fifth-largest smartphone vendor in China with a 7.1% share of shipments, according to Beijing research firm Analysys International. Nokia Corp. (NOK, NOK1V.HE) had the largest share with 26.7%.

-By Owen Fletcher, Dow Jones Newswires; 8610 8400 7702; owen.fletcher@dowjones.com

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