China Mobile, Apple talks fail over app store

Negotiations between China Mobile and Apple on selling the iPhone in China have reportedly broken down once again - this time due to China Mobile's insistence on controlling iPhone app sales.

China Mobile was determined to take charge of online sales of iPhone apps, a China Mobile Research Institute source told Interfax.

The operator concerned the deal would threaten its dominance in the Chinese mobile app market, the source said.

It is the third round of negotiations to have broken down in 18 months. In the first round, China Mobile rejected Apple's request for a commission of up to 30%.

In the second round, Apple offered to sell iPhones to China Mobile at $600 each, but stipulated that China Mobile subsidize the cost of the handset. Again, talks broke down.

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