“China Mobile’s insistence on administering the online sale of iPhone applications caused the breakdown of the operator’s talks with Apple over bringing the iPhone to China, a source at the China Mobile Research Institute told Interfax recently,” Cindy Geng reports for Interfax.
“In the first round of negotiations, Apple asked for between 20 percent and 30 percent of China Mobile’s revenues from iPhone users, which was rejected by China Mobile, the source said,” Geng reports. “In the second round, Apple offered to sell iPhones to China Mobile at $600 per unit and required that China Mobile subsidize iPhone service bundles offered to users. Again, the two parties failed to reach an agreement.”
Geng reports, “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.”
Full article here.
MacDailyNews Note: China Mobile obviously doesn’t get it at all.
[Attribution: mocoNews. Thanks to MacDailyNews Reader “JES42” for the heads up.]