China Mobile Demands Share of App Store Revenues in Exchange for Carrying iPhone
China must like Chris Matthews, cause they’re playing Hardball with Apple.
China Mobile—China’s largest cell phone carrier with more than 600 million subscribers—knows they’re integral to Apple’s success in the region and the terms they are requesting to bring the iPhone to their network reflect it. China Mobile is requesting that they get a slice of the App Store revenue pie in exchange for carrying the phone on their network.
Apple ain't havin' it.
The two companies have been in talks to bring the phone to the worlds largest network since 2008, but nothing has ever materialized. Apple’s notorious need to control everything and their inability to budge has apparently met another entity just as stubborn, and just as important.
However, Apple in order to bring an iPhone to China Mobile’s network needs to produce a TD-SCDMA-compatible iPhone. None of the current generation iPhones are compatible with China Mobile’s 3G network. That hasn’t stopped 10 million iPhone users from using WiFi only data on China Mobile though. Apple has the time, money, and market share necessary to survive long enough to produce an iPhone 5 compatible with China Mobile’s network and in the meantime work out the terms.
Apple's iPhone will make its way to China Mobile's network eventually. The upside is too huge for Apple to ignore.
Source: All Things D