China Unicom denies rumors of Xiaomi breakup

China Unicom (Hong Kong) has denied rumors it is ending its partnership with Xiaomi or asking for compensation for unsold cellphones.

According to China Daily on Wednesday, the Chinese carrier issued a statement on its official microblog clarifying the arrangement with Xiaomi continues to be on solid ground.

"Since China Unicom partnered with Xiaomi last December, we have honored the 'open and win-win' principle and maintained a good relationship," China Unicom said.

With the help of China Unicom's subsidy and marketing policies, all Xiaomi's Mi-One smartphones had been sold, China Unicom added. It is also prepared to sell the latest generation of Xiaomi smartphones and will continue to offer subsidies.

The Chinese carrier last December had agreed to purchase 1 million Mi-One handsets from Xiaomi for China Unicom's 3G Wideband Code Division Multiple Access (WCDMA) network, according to a seperate report by China Daily. 

However, the price of Mi-One was slashed from 1,999 yuan (US$314.65) to 1,299 yuan (US$204.47), sparking rumors it could lead to a 300 million yuan (US$472,218) loss for China Unicom if it failed to sell out its remaining inventory and the termination of partnership between both companies.