01.14.08
No China for (Chinese-made) iPhone?

Engadget and The Financial Times are reporting that Apple and China’s leading mobile phone company, China Mobile, have called off negotiations to introduce the iPhone into the Chinese market. The rumor is that China Mobile balked at Apple’s revenue sharing demands. Cingular, T-Mobile, O2 and Orange came around to Apple’s way of thinking on sharing revenues from the popular iPhone, but not China Mobile. Back in November, China Mobile’s CEO labeled the iPhone “not suitable” for China.
Judging from the popularity of gray market imports of the iPhone in Beijing and Shenzhen (based on my own unscientific visual survey) this could be a big boost to smaller rival China Unicom if they are able to come to terms with Apple.
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