Apple and China Mobile have broken off talks to bring the iPhone to China, according to a Reuters report. In November, it was reported that talks between the two companies had failed, but China Mobile quickly denied the report, and said that it was still in negotiations to offer the handset.
China Mobile CEO Wang Jianzhou had previously warned that he disliked the revenue-sharing business model Apple had used elsewhere for iPhone agreements, and it is thought that contention over this point may have led to the split. “It’s not a surprise.
China Mobile doesn’t want to share its non-voice revenue,” said Duncan Clark, chairman of BDA China, a Beijing-based telecoms research consultancy. “The two have very strong egos and, as in any relationship, that often doesn’t work.” Apple has said that it plans to launch the iPhone in Asia in 2008.