After China Mobile turned down Apple for an exclusive iPhone contract in China, the world’s largest cell phone market, report comes out that China Mobile is nevertheless servicing iPhones. In-Stat said that there are as many as 400,000 iPhones being used for the China Mobile network.

According to News.com, the In-Stat study indicates “Chinese consumers want smartphones with multimedia features and Web browsing, and the iPhone fills that need nicely. And they’re willing to pay for it: 20 percent of smartphones sold in China last year went for 4,000RMB ($533) or more.”