China Mobile yesterday said it has ended talks with Apple Inc to
introduce the iPhone in China, a breakdown that experts attributed
to their differences over revenue sharing.
"Any deal needs compromises and I think the reason for the
breakdown of talks between China Mobile and Apple was that both
sides were not willing to make one," said Yu Yang, president of
Analysys International, a domestic research firm focusing on the
telecom industry.
Bloomberg yesterday reported the collapse in talks citing China
Mobile's Hong Kong-based spokeswoman.
The latest development makes it difficult for Apple to sell its
popular iPhone in the world's largest cellphone market, with 539
million mobile phone users, according to Ministry of Information
Industry figures.
Gao Jianshu, director of China Mobile's data services, said in
an industry forum on Saturday that China Mobile had rejected
Apple's proposal of sharing 20 to 30 percent of China Mobile's
revenues from iPhone users, according to Sina.com. But he had said
the two companies were preparing for the next round of
negotiations.
Apple started talks with China Mobile in November after iPhone
made a spectacular debut in the US. But the company's insistence on
sharing revenue with cellphone operators that may benefit from
iPhone's popularity has now impaired its talks with China
Mobile.
"I think Apple may be looking for opportunities after the
restructuring of the telecom industry is completed," said Yu.
(China Daily January 15, 2008)
