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Apple, China Mobile clear hurdle in iPhone talks

updated 09:20 am EDT, Fri June 27, 2008

Apple, China Mobile warm

Past divisions between Apple and cellular carrier China Mobile are narrowing, Reuters reports. For months, informal talks to bring the iPhone to China have been stalled, as the two companies could not agree on fundamental points of interest. These have been resolved, says China Mobile spokeswoman Rainie Lei. The largest obstacle is said to have been revenue sharing, something Chinese companies do not practice as a rule.

"Apple is no longer insisting on a revenue-sharing policy, so the biggest hurdle for China Mobile to bring in the iPhone has been cleared," says Lei, "but there are practical issues still to be resolved."

Apple has abolished revenue-sharing agreements in most if not all cases for the iPhone 3G, instead opting for carriers to subsidize the price of the phone. Remaining issues are likely to include distribution, adapting cellular frequencies, and pricing. Most Chinese workers are drastically underpaid compared to First World counterparts, and at $499, a 16GB, 2.5G iPhone would cost twice China's average monthly salary.




by MacNN Staff

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Comments

  1. Monstermind

    Joined: Dec 1969

    -2

    It says here...

    "Further action in the matter hinges on Apple's agreement to never mention 'Dalai Lama', 'Tiannenmen Square', 'poisoned pet food' or 'those Communist scumbags' in any of their advertising."

  1. lockhartt

    Joined: Dec 1969

    -2

    you forgot...

    "children's toys colored with lead-containing pigments"

  1. TiDual

    Joined: Dec 1969

    +4

    China Mobile ...

    in return, has promised never to mention "water boarding", "Guantanamo", "the Iraq War", "Enron" or "Paris Hilton", and will never refer to the absence of democratic principles for the election of presidents, or presidential candidates, in anything but a supportive manner.

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