iPhone flops in China, only 5! units sold... at $1000/piece
 

However, in the time since, the iPhone has proved an epic flop in China even as Chinese telecoms try to defend their weak sales. One major problem is price. The phone is available in China for 6,999 yuan, or $1,024 without a contract.

http://www.dailytech.com/An+Epic+Fai...ticle17026.htm

most Chinese earn less than $200/month
http://www.worldsalaries.org/china.shtml

what are they thinking pricing this phone $1000.

This title isn't very accurate I'm afraid : one (major) etailer only sold 5 pieces because :

1. these are crippled phones (no wifi ! no 3G !!)
2. non crippled phones are easily available on the "grey market" for $800 a piece (which is cheaper than here btw ;) )