Details of iPhone Negotiations Between Apple and China Mobile Emerge

Interfax reports on details of the lengthy negotiations between Apple and China Mobile over bringing the iPhone to China. According to their source, China Mobile president Wang Jianzhou revealed in a recent visit to the China Mobile Research Institute that talks between the two companies have broken down three times over the past year and a half.

The negotiations, which have reportedly involved both Steve Jobs and Tim Cook, initially stalled over Apple's request that China Mobile share 20-30% of their monthly iPhone revenues with Apple. While this business model was initially utilized in the United States with AT&T and the original iPhone, Apple has shifted away from revenue-sharing deals with carriers to more traditional arrangements involving handset subsidies. Apple and China Mobile, however, were also unable to come to an agreement on subsidies, with China Mobile objecting to Apple's demand that the carrier pay $600 per iPhone.

The most recent round of talks has broken down over Apple's App Store and China Mobile's reluctance to relinquish their tight control over China's mobile Internet offerings.

The third and final round of negotiations also broke down over Apple's insistence that it, rather than China Mobile, sell iPhone applications directly to customers via its online store. Wang saw the offer as a threat to China Mobile's dominance of China's mobile Internet industry, as Apple rather than China Mobile would collect money directly from customers under the deal.

"Wang said China Mobile should operate the application store itself in order to maintain its advantage," the source said.

Wang also pointed out that iPhone users in other parts of the world pay for applications by credit card, a model which would not be successful in China, where users prefer to pay through deposits in their mobile phone accounts. Under the latter arrangement, China Mobile would have to play a part in administering the purchase of iPhone applications in China, the source said.

Top Stories

affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
maxresdefault

Craig Federighi and Greg Joswiak Discuss iPadOS 15, macOS Monterey, Privacy, Shortcuts on Mac, and More

Saturday June 12, 2021 6:12 am PDT by
As is tradition, Apple executives Craig Federighi and Greg Joswiak joined Daring Fireball's John Gruber in an episode of The Talk Show to discuss several announcements that Apple made over this weeks WWDC, including iPadOS 15, macOS Monterey, and a large focus around privacy. Federighi kicks off the conversation discussing the common architecture, now thanks to Apple silicon, across all of...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
adobe photoshop sketch ipad

Adobe Removing Photoshop Sketch and Illustrator Draw From App Store in July

Saturday June 26, 2021 4:02 pm PDT by
Adobe this week reminded customers that its Photoshop Sketch and Illustrator Draw apps will no longer be available for download on iOS and Android starting July 19. Adobe plans to stop supporting the apps for existing users on January 10, 2022. In a support document, Adobe said users can easily migrate to its Fresco app, which combines many Photoshop Sketch and Illustrator Draw drawing and...
REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
homepod feature blue2

Looking to Grab a HomePod Before They're Gone? These Retailers Still Have Stock

Monday March 15, 2021 6:54 am PDT by
Apple last week discontinued the original HomePod, marking just over three years on the market for the full-size smart speaker. If you're looking to purchase the larger HomePod before it's completely gone, there are still some options online today. The biggest retailer with remaining stock on the HomePod is Apple itself, which has the White HomePod for $299.00 on its website. Space Gray is...
september 2021 event ar logo

Apple's September 14 Event Page Features AR Logo on iPhone

Tuesday September 7, 2021 9:23 am PDT by
Apple this morning announced a digital-only event that will be held on Tuesday, September 14, and if you view the event webpage on an iPhone, you can tap on the logo to open up Apple's Safari AR viewer and you'll see the three-dimensional logo move in real-time in the real world. Just open up the event site on an ‌iPhone‌ or iPad and tap right on the logo to open up the AR version. The...
iphone 11 night mode photos

Apple Reveals New Night Mode Photo Feature Exclusive to iPhone 11 Series

Tuesday September 10, 2019 12:23 pm PDT by
Apple today announced the iPhone 11, iPhone 11 Pro, and the iPhone 11 Max, all-new models that boast improved cameras, and specifically, a dramatic new Night Mode photo feature. Last year, Google introduced its impressive Night Sight camera mode, a software-based feature that allows users to take detailed pictures in dark environments using Google Pixel smartphones. Apple's new Night...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...