Recently, Apple and China Mobile broke off their negotiations over the launch of iPhone into Chinese market. Although no official explanation has been given for the failed negotiation, some insiders believed the failure must result from a disagreement between China Mobile and Apple over the revenue-sharing business mode.  

However, some of large mobile phone sellers in China predicted that Apple is likely to run its iPhone business via direct marketing. In fact, the mobile services providing mode that iPhone requires are totally different from the current ones in China. Chinese mobile services providers, even giants like China Mobile would not take the risk of completely reforming its business operation mode just for one cell phone. With no support from mobile services providers, Apple would probably use its mature business network established by its iPod players to sell iPhone in China.   

For more details, please read the full story in Chinese. (http://finance.jinghua.cn//c/200802/13/n706249.shtml)   
 
(China.org.cn February 13, 2008)