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China Mobile: Apple Drops Revenue Sharing Demand, Bringing Mainland China iPhone Closer

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China Mobile says that talks geared towards bring Apple's iPhone to mainland China have cleared a big hurdle, according to Reuters.

But there is no timetable for when China Mobile would bring the iPhone to mainland China, a spokeswoman said. "Apple is no longer insisting on a revenue-sharing policy, so the biggest hurdle for China Mobile to bring in the iPhone has been cleared, but there are practical issues still to be resolved," said China Mobile spokeswoman Rainie Lei.

The report indicates that the deal would be similar to traditional handset distribution models where the carrier subsidizes the cost to make the phone cheaper and spur sales.

Apple has recently moved to this model with the iPhone 3G versus the original iPhone which was not subsidized but Apple received a cut of the monthly service plans.

While there is still no firm timeline on the introduction of the iPhone in China, Apple CEO Steve Jobs has indicated he would like to see the rollout this year.

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overanalyzer

macrumors 6502a
Sep 7, 2007
909
0
Boston, MA USA
China Mobile says that talks geared towards bring Apple's iPhone to mainland China....

Emphasized by this saying "bring" Apple's iPhone to mainland China, it's rather amusing to me that there are still pending notable difficulties and "practical issues" in releasing the iPhone to its place of manufacture, which you'd think ought to be easier than places on the opposite side of the planet. We've definitely got a little ways to go on this whole global economy thing.
 
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HFU

macrumors regular
Jun 8, 2005
148
0
XamaX said:
China Unicom to sell 3G iPhone in August - Rumor Link

"A rumor has been going through the Chinese Web that China Unicom
(CHU), one of the major mobile service providers in China, has signed
with Apple (AAPL) and will introduce Apple's 3G iPhone to the Chinese
mainland in August this year."

That's 160 million subscribers to be (eventually) added to the list. Just to put it into context, it equals or exceeds the whole Telefonica or America Movil network. Check it out at wikipedia

And China Mobile will be eventually added too, that'll be another 370 million

Come on, who volunteers to do some number crunching?! :cool:

Quote member from AI.

Imagine if China Mobile is done deal, there will be more iPhone users in China than any other countries combined!
 
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Adisah

macrumors regular
May 29, 2008
106
0
After that deal goes through, it's money in the bank for Apple. Cha Ching!
 
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jayducharme

macrumors 68040
Jun 22, 2006
3,826
3,821
The thick of it
After that deal goes through, it's money in the bank for Apple. Cha Ching!

That's most likely true. But are there other precedents for Apple giving up so much ground so quickly? Jobs originally set out to revolutionize the mobile phone industry but now he seems to be giving in to it, uncharacteristically ceding control and reinforcing the very policies for which he originally criticized the mobile phone providers.

I hope he's still doing physically well. It just isn't like him to abandon a revolution, especially one that seemed to be working. The iPhone is still an elegant merging of well-designed hardware and software. But that alone may not be enough to get customers to switch from their current providers. I really wish that the iPhone had been released without the exclusive AT&T deal in the U.S. I would have already gotten one. But I guess even if there's an exclusive deal in China, the much larger population base will still spell a lot of revenue for Apple.
 
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Mackan

macrumors 65816
Sep 16, 2007
1,373
48
That's most likely true. But are there other precedents for Apple giving up so much ground so quickly? Jobs originally set out to revolutionize the mobile phone industry but now he seems to be giving in to it, uncharacteristically ceding control and reinforcing the very policies for which he originally criticized the mobile phone providers.

I hope he's still doing physically well. It just isn't like him to abandon a revolution, especially one that seemed to be working. The iPhone is still an elegant merging of well-designed hardware and software. But that alone may not be enough to get customers to switch from their current providers. I really wish that the iPhone had been released without the exclusive AT&T deal in the U.S. I would have already gotten one. But I guess even if there's an exclusive deal in China, the much larger population base will still spell a lot of revenue for Apple.

It's just good that Apple is forced to walk away from its initial buisness model - which is only about control and milking money. The iPhone is a remarkable product, but I see no point in praising Apple/Steve... since they could clearly have gone a much better path with selling and distributing it.
 
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kdarling

macrumors P6
The report indicates that the deal would be similar to traditional handset distribution models where the carrier subsidizes the cost to make the phone cheaper and spur sales.

Apple has recently moved to this model with the iPhone 3G versus the original iPhone which was not subsidized but Apple received a cut of the monthly service plans.

To a carrier, it's the same cost, whether part of their monthly income goes to Apple (aka revenue sharing) or to the customer (aka subsidy).

It's just that now, the customer gets the benefit instead of Apple. I think carriers like that better, as it'll mean more customers can buy in.
 
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bsolomonny

macrumors regular
Jan 10, 2007
148
0
Taiwan
Emphasized by this saying "bring" Apple's iPhone to mainland China, it's rather amusing to me that there are still pending notable difficulties and "practical issues" in releasing the iPhone to its place of manufacture, which you'd think ought to be easier than places on the opposite side of the planet. We've definitely got a little ways to go on this whole global economy thing.

Actually the OEM for the 3G Iphone is Foxcom, which is located in Taiwan. To date Apple has yet to announce any official release of the iphone to the Taiwanese market. Which by the way is one of the best cell phone markets in the world. I think we average 2.2 cell phones per person. Anyone have an idea why Apple has skipped the Taiwanese market?
 
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ffkly

macrumors newbie
May 13, 2008
11
0
The only way Apple can release iphone officially in China is to sell cheap and unlocked iphone, I don't think China Mobile would take any forms of profit sharing plan, Apple may have to give up some profit to China Mobile. Chinese market is highly dominated, and customer base is huge, number of Chinese cellphone users is greater than US population, and still fast growing, so they don't need iphone to attract more customers.
China Mobile is most profitable company in the planet.
 
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onigami

macrumors member
Jan 11, 2008
88
5
Actually the OEM for the 3G Iphone is Foxcom, which is located in Taiwan. To date Apple has yet to announce any official release of the iphone to the Taiwanese market. Which by the way is one of the best cell phone markets in the world. I think we average 2.2 cell phones per person. Anyone have an idea why Apple has skipped the Taiwanese market?

Ummm...let's think about this for a second:
Apple=American company
ROC and PRC=not exactly friendly.
If Apple were to release the iPhone in the ROC before the PRC (if at all), PRC telecoms (which are all partially owned by the Communist Party of China) would have immediate reservations, if not drop interest entirely. (Yes, the CPC can and has done that)

Honestly, I wouldn't mind if that were the case. A nation with a "police" that murders at will (if you aren't sent to brainwashing camp) deserves nothing at all.
 
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