China Mobile Not in Talks with Apple For iPhone Deal

by , 7:30 AM EDT, April 14th, 2008

China Mobile is not in talks with Apple for an iPhone deal, according to the company's chairman, Wang Jianzhou. TMCNet reported over the weekend that China Mobile has concerns over Apple's iPhone business model in which the carrier shares a percentage of its subscriber revenue with Apple.

Those concerns have kept the two companies from entering into serious negotiations for an iPhone deal. China Mobile is among the world's largest cell phone carriers -- possibly the largest in the world -- with some 380 million subscribers. The company's reach in the Chinese market offers many benefits to Apple as a partner for the iPhone, which is why much attention has been focused on whether or not a deal can be reached between the two companies.

Apple has not yet entered into any Asian market with its popular iPhone, though there is a brisk grey market for the devices in China, India, and other a few other countries. Mr. Wang didn't specifically close the door on a future deal with Apple, saying, "Our door will remain open as long as there is customer demand."

It should also be pointed out that Apple Chief Operating Officer Tim Cook told attendees at a Goldman Sach's investor conference that Apple isn't necessarily married to its current iPhone business model, and that his company is open to new ways of selling the phone.

Those comments could well be pertinent in light of the company's efforts to secure a deal in China and other Asian markets where Apple isn't as much of a powerhouse as it is in the U.S. electronics market, and where companies often negotiate and operate very differently from Western companies.