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Details of iPhone Negotiations Between Apple and China Mobile Emerge
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RIM has NOCs to maintain in conjunction with the carrier. Might be a factor.
Apple no longer gets monthly payments from carriers, at least not ATT. That model was dropped after the first year. (It was just Apple taking what should have been each consumer's subsidy. No extra cost to ATT.)
You know China is run by a communist government right? They do a lot of things they have "no right" to do...most make opening their own app store a relatively minor thing. In addition to the potential revenue, I think they'd like control of their app store so they can filter and control what reaches their citizens.
And with a population of over a billion, I don't think they'll notice your refusal to buy anything from them....
You [and several other posters] seem to forget that China Mobile is a *company* not part of the government.
This is exactly why America is failing
DO NOT GIVE AWAY THE KEYS OF THE iPhone KINGDOM TO THEM!
They took our manufacturing jobs and gave nothing back. They will take Apps and never give back for that either.
No other country can TAKE your American manufacturing jobs unless YOUR American companies decides to give them away.
If Apple is to be a serious handset telco player, they can not ignore the Chinese market. SJ knows, Wall Street knows. But some ignorami don't.
By industry account, even without an official entry, there's already over 1 million iPhones being used on Mainland China.
"'Murican?"
Many may be in denial here, but the truth is that China (and their present/upcoming "yuppie boom") is increasingly becoming a market Apple cannot continue to ignore.
China mobile is very much *not* a company in the way we think of one. It is owned mostly by the Party/Government. Although China has come a long way since opening up to the free market, I can tell you (from the perspective of someone living in China) that is still has a LONG way to go in allowing free trade & competition.
There are only two mobile carriers in China, both are owned by the government, and China Mobile may as well be a monopoly. From having dealt personally as a customer with China Mobile, China Netcom (ISP), and other government-owned companies, I can say that someone needs to come in and give these slugs a run for their money!
Seeing the change in china has made me a true believer in the power of the free market, but until the government allows more competition against gov't-owned firms, consumers here are left with poor quality providers. IMHO.
Don't give up, Steve!
I'm glad that the negotiations broke down. I would not want to see a bad precedent set which would embolden Rogers, Fido, or AT&T to start locking down or "branding" applications on the iPhone. It is precisely this sort of behaviour that drove me to switch from my crappy Motorola to an iPhone in the first place.
It's my iPhone and the carriers have no business meddling with the software on it.
It's my iPhone and the carriers have no business meddling with the software on it.
I totally SO agree. IMHO Applo would have sold shxtloads more of their iPhones if they would have just sold it unlocked in their shops, just like their iPods, etc - and in the end make more profit
This is exactly why America is failing
DO NOT GIVE AWAY THE KEYS OF THE iPhone KINGDOM TO THEM!
They took our manufacturing jobs and gave nothing back. They will take Apps and never give back for that either.
Stole? They didn't steal anything. The free market gave the jobs to them, because their cheaper lifestyles allow them to work for less money. It's the fault of us in the western world for insisting on high hourly wages and for being willing to buy products that weren't manufactured locally.
Nothing was stolen, it was offered and we went after it with open arms.
"'Murican?"
Many may be in denial here, but the truth is that China (and their present/upcoming "yuppie boom") is increasingly becoming a market Apple cannot continue to ignore.
So, not catering to china means apple will die right?
They dont HAVE to compete there, and probably shouldnt given the amazing cheap products you can get there.
The same model of apps and charging to phone bills is the norm in Japan, but it didnt stop iPhone coming in with it's own plans....
Just let China keep their low-quality crap and filtered internet. If they can't demand it, they don't deserve it!
Softbank was in a position where bending to Apple's will wasn't a problem; AFAIK/IIRC, they're the smallest carrier in Japan.
If that is the case then why do Apple need China Mobile again? They got 1,000,000 sales without having to give up any of their recurring App store profits to China Mobile. At the price Apple sells unlocked iPhones they made just as much profit (or more) on the handset as they would have selling them to China Mobile.
CM needs Apple more then Apple needs them. What demand there is for Apple products in China can be filled by unlocked iPhone sales and a few urban boutique stores for hardware. The resulting higher prices will only help Apples's brand image there. If they could sell 1,000,000 iPhones already with limited official distribution channels how many more could they sell if they really tried to push them unlocked?
People are stuck on the 'size of the potential market' but I feel like it is largely hype. CM might have 300 million subscribers but how many can afford an iPhone and the matching monthly data plan? Of those people how many are willing to sign a contract and get subsidized hardware? Of those people how many wouldnt buy an iPhone unlocked but would if CM was offering it? That number is the real market. A subset of a subset of a subset.
For the revenue sharing and price per phone, China Mobile needs to take the pole out of their ass. A more expensive phone doesn't harm either party, only sales, which are currently at 0 due to their stubbornness.
For the App Store and phone credits... Apple should run the App Store and allow people to use credit card... but China Mobile should allow phone credits to be used instead -- apps bought with credits would cost 5% more, and that 5% goes to China Mobile.
For the App Store and phone credits... Apple should run the App Store and allow people to use credit card... but China Mobile should allow phone credits to be used instead -- apps bought with credits would cost 5% more, and that 5% goes to China Mobile.
well both are very stubborn, but i hope that they get a deal worked out soon. it would really help the iphone even more