Apple Inc. is determined to sell iPhone to China even though it will have no more sharing from toll revenues of cooperative carriers, and the Wi-Fi function of the multimedia smart phone is to be deleted.
Before the Beijing 2008 Olympic Games, in their second round of discussions held in June, the consumer electronics and software products producer has given up trying to gain sharing from the sales revenues and toll revenues (multimedia and applications upgrade) of its Chinese partner China Mobile Ltd.. Instead, It agreed to receive lump- sum subsidies from the latter, in exchange for the introduction of iPhone to China.

Apple is eyeing the large Chinese market with more than 600 million users, while China Mobile is interested in the former's brand influence. However, their negotiations on iPhone are not smooth.

Their first round of consultations broke down. Apple asked for 20% to 30% sharing from China Mobile's toll revenues, which was declined by the latter without hesitation.

On September 2, 2008, China Mobile Board Chairman and CEO Wang Jianzhou revealed at the CommunicAsia2008 held in Bangkok, that both Apple CEO Steve Jobs and himself hoped iPhone would come into China as soon as possible, though no agreements had been signed between the two parties. It was the second time the China Mobile veteran had talked about iPhone as well as cooperation with Apple at pubic occasions.

Though Apple gave in asking for sharing, it will not compromise in issues such as the specific amount of subsidies, promotions of iPhone like service packages, and the launch of iPhone based on China's proprietary 3G technology TD-SCDMA.

China Mobile Communications Corporation (CMCC) Spokesman Gao Songge, and Apple Asia Pacific Spokesperson Jill Tan both have not commented on the newest progress relating to the two companies' cooperation.

Recently, Russian telecom carriers MegaFon and Vimplelcom announced that agreements had been reached with Apple to sell iPhone in the country. But they have not released whether they would give sharing to the US company. Hutchison Telecom, beginning sales of iPhone in Hong Kong a month earlier, also remained silent for its cooperation forms with Apple.

Its spokesperson remarked that 3G iPhone's shipment, revenue sharing proportions, and how long the negotiations with Apple would last, were all business secrets that were discommodious to disclose. A person in the know revealed that Apple's cooperation form with the Hong Kong firm was similar to that of China Mobile.

Since June 29, 2007, when 2G iPhone was promoted, Apple has licensed many carriers in the US, the UK, Germany, and France. All of them have to share their toll revenues with Apple for gaining exclusive sales rights in their countries. Foreign analysts estimated that AT&T paid USD 10 to USD 20 to Apple monthly for each iPhone it sold, and its monthly charges ranged from USD 60 to USD 220 per user.

(USD 1 = CNY 6.84)

Source:SinoCast