China: No iPhone for You!
China Mobile and Apple have been trying to come up with an agreement to bring the iPhone to China with three rounds of talks over the last 18 months between Apple CEO Steve Jobs and COO Tim Cook and China Mobile President Wang Jianzhou. The end result of these talks is no iPhone for China
According to an Interfax
source in the first round of talks Apple asked for 20-30% of China Mobile's revenues which China Mobile rejected.
In the second round Apple offered to sell iPhone to China Mobile at $600/unit as long as China Mobile agreed to subsidize the phone when selling to its users. China Mobile didn't like that much either.
The third round of talks fell apart due to the AppStore. Apple of course wanted to sell Applications for the China Mobile iPhone via the AppStore as it does with the rest of the world. In response "Wang said China Mobile should operate the application store itself in order to maintain its advantage."
Wang went on further saying that applications in the AppStore are paid for by credit card and in China users prefer to pay for things via deposits to their mobile phone accounts, not by credit.
The end result is that Apple and China Mobile can not agree, killing off the chances of the iPhone officially making its way into China. Wang did however mention that China Mobile is coming up with its own strategy to offer applications for smartphones (read Google Android
[Interfax via macrumors]