Katie MarsalChina Mobile will not carry Apple's iPhone after the two companies failed to reach a deal to bring the device to the populous Asian country.
"Our parent has terminated talks with Apple over the iPhone," a China Mobile spokeswoman says.
The news appears to substantiate claims late last year that Apple has been struggling to land deals for the iPhone in China. At the time, Apple was reportedly at an impasse over its insistence that any carrier share its monthly subscription revenues — an income split that has allegedly encountered opposition in multiple countries but may be particularly insurmountable in China, according to reports.
"The two have very strong egos and, as in any relationship, that often doesn't work," says research firm BDA China's chairman, Duncan Clark.
Concerns may also exist over Apple's tendency towards deals that require a locked SIM (subscriber information) card, which would prevent Chinese iPhone users from jumping between networks either in the country or while traveling.
Apple is not limited to considering China Mobile and may instead entertain a deal with its next-largest option, China Unicom. The firm said last year that it was not committed to the iPhone but was receptive to the possibility of supporting the iPhone.
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12 Comments
Sheesh, more unwelcome FUD. Talks have been suspended, for now. They can be resumed at any time. Meanwhile, deals are being worked out with other countries and perhaps with China's other carrier. The iPhone will be sold in China--it's just a matter of when, not if.
Hey, it's Macworld eve. Time for Kaspar's automated slave to give it a rest. How 'bout speculating about this "Something in the air" stuff. Is Temporary Insanity active?
China is tough to negotiate with when you're selling (not buying). Apple is discovering that. This one might be tougher than US and European telecoms.
It will be really interesting to see how this pans out. Tough to predict. However, if Apple is genuinely playing hardball with China Mobile, that might imply that the 3G version is coming out sooner rather than later.
Sheesh, more unwelcome FUD. Talks have been suspended, for now. They can be resumed at any time. Meanwhile, deals are being worked out with other countries and perhaps with China's other carrier. The iPhone will be sold in China--it's just a matter of when, not if.
Don't be stupid. It's not FUD. That's actually what happened: the talks have been terminated.
Don't expect Apple to shove down products down the throats of Chinese people like Apple does to Americans. China doesn't need fashion-y gadgets when it has its own industrys' products which cost far less.
If word got out that Apple gave another company an easier deal, they would lose clout with other phone companies in the future. They're just trying to leverage their position.
I hate protectionist countries. Please buy everything from us [toys, plastics, steel, etc] but ohh we can't let you buy more than 22.348% of this industry or let you sell this product here. I'm not advocating trade war but apple could fight back by hinting that it will not produce or assign products to be made in china but will farm out production of apple products to india? russia? I know, why would china telecom or anyone care about chinese manufacturers-- they won't but some highly place minister should care enough to call someone to the cabin for a talk....
Proud owner of iphone designed by apple in california/assembled in china