APPLE Inc has developed handwriting recognition functions for the Chinese language on iPhone ahead of its expansion into China, the world's largest cell phone market.

Apple has quietly included handwriting recognition for Chinese (traditional and simplified) into the latest iPhone update software, 2.0 beta. When people select Chinese input, they are given the option of using handwriting recognition to draw characters on the screen with their fingers. As people write the character, four possibilities appear on the screen, media reported yesterday.

Chinese Website Wretch.cc details screenshots of the new feature.

"In China, hand recognition is a must-have in the high-end market," said Sandy Shen, a telecommunications analyst at Gartner Inc based in Shanghai. "If Apple wants to expand in China, it will adapt the iPhone for the market."

The iPhone is not available in China now, but some Chinese people use unlocked models which originally sold in overseas markets.

Third-party Chinese handwriting recognition software is available but it is not very stable, according to iPhone users in China.

Yuna Huang, Apple China's spokesperson, declined to comment on the issue.

Manual input

Apple recently started hiring for the position of handwriting recognition engineer, according to Website macrumors.com.

Handwriting recognition is widely used for manual input in the Chinese language but not English, experts said.

The iPhone, a touch-screen device which combines Apple's iPod music player, a video player and Web browser, sells well globally. Apple aims to ship 10 million iPhones globally by the end of this year.

Vodafone, the world's biggest mobile carrier by revenue, announced yesterday that it has signed an agreement with Apple to sell iPhone in ten regional markets.

Later this year, Vodafone customers in Australia, the Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network.

Customers using the phone have also driven up data revenues by surfing the Internet and sending E-mails, a key attraction to operators as the cost of making calls decreases.

Vodafone won't share its revenue with Apple - and that's a new business model for iPhone sales, Shen said.

Apple had talks with China Mobile to introduce iPhone into China some time ago but the negotiations halted as Apple insisted on data revenue sharing.

"Now Apple will play the role of pure handset supplier and both sides can accept it. China is the huge market no player can neglect," Shen said.