Apple ends iPhone talks with China Mobile

Talks between China Mobile and Apple over the launch of iPhone handsets in China have been called off, officials at the Chinese company, quoted by an Associated Press report, said.

'We can only say that negotiations have ended for now. We have no other news to report,' Li Honghui, a spokeswoman for China Mobile Communications, the parent of cell phone carrier China Mobile, was quoted as saying.
She declined to comment further.

Rainie Lei, a spokeswoman for China Mobile, also declined to say why the talks ended.

'We have held talks with Apple to launch the iPhone device in China. However, those talks have ended,' she said.

Citing an unnamed official at China Mobile's data services department, Chinese internet portal reported that China Mobile and Apple could not agree on revenue-sharing terms in their preliminary discussions, according to Dow Jones Newswires.

The official said China Mobile was unwilling to accept Apple's request for a 20% to 30% share of China Mobile's user fees from future iPhone users, according to the report.

Market watchers and analysts have said a breakdown in talks between Apple and China Mobile could open the way for rival China Unicom to offer the iPhone exclusively in mainland China.